shannon development annual report and accounts 2009

shannon developmentAnnuAl report 2009looking ForWArD:

Delivering A better Future For the people oF the shAnnon region

¤18.5m wired.shannon Broadband’s total investment in a 109km fibre optic cable network will enable the Region’s high-speed broadband and communications technology infrastructure. making a critical difference in business – as well as the Region’s homes and schools – and ensuring a connected future for the people of the shannon Region.

the Future. it’s ours to mAke >

Difficult times, whilst causing us to reflect and seek new ways of growing, can encourage a spirit of creativity and innovation.

Dynamic Regions – Future Directions.

Shannon Free Airport Development Company Limited, or Shannon Development as it’s known today, celebrated its 50th anniversary in 2009.

To mark this milestone, Shannon Development held a National Conference, called Dynamic Regions – Future Directions in Regional Development, in November 2009. The conference was attended by a large gathering of business and civic leaders who engaged in stimulating analysis and debate on future directions in Irish regional development. The keynote speaker was Mary Coughlan TD, Tánaiste, and Minister for Enterprise, Trade and Employment. She was followed by an expert panel of national and international speakers, all leaders in their fields.

Initiatives such as this conference aim to bring diverse interests together to explore future challenges and opportunities.

Creativity. It’s in our DNA.

It is perhaps appropriate that we celebrated our 50th year in 2009. Seeking inspiration in difficult times, we need look no further than the spirit of our founder, Brendan O’Regan.

In its early days Shannon Development created many innovative solutions, drawing inward investment and tourism numbers in ways that have since become industry standards, and are being replicated in economies worldwide.

We are now challenged to renew that spirit of innovation, delivering new solutions to foster the next generation of risk-takers and leaders.

Brendan o’Regan

Seven pillars.

We have set out our strategy for future development based on seven key strategic investment projects (2009–2013).

• Shannon Free Zone

• Tourism and Product Development

• Greater Limerick Area

• Regional Growth Centres

• Energy Cluster

• Asset Development

• Communications Infrastructure

This strategy aims to position Shannon Development to take maximum advantage of the inevitable upturn in the global economy by leveraging our assets and acting as a focus for regional development locally and nationally.

2009 wAS AN extRAoRDINARy yeAR FoR IRelAND – AND the woRlD’S eCoNomy. we belIeve thAt wIth eACh ChAlleNge ComeS AN oppoRtuNIty FoR leARNINg AND gRowth.

we ARe CommItteD to SuppoRtINg employmeNt AND FoSteRINg eNteRpRISe thRough ReSeARCh, buSINeSS SuppoRt AND INFRAStRuCtuRAl DevelopmeNt.

Contents

Chairman’s Statement: 2

Chief Executive’s Statement: 5

Shannon Development

2009 Key Result Areas: 6

Property Development: 9

Tourism Development: 10

New Energy Focus: 15

Limerick: 16

Broadband Connectivity/

The Knowledge Network: 17

The Year In Pictures: 18

Company Organisation: 20

Statistical Information : 22

Company Offices: 24

Directors’ Report and

Consolidated Financial Statements: 28

Notes To The Consolidated

Financial Statements: 38

shannon development annual Report 2009 :: 1

While not underestimating the challenges that lie ahead, we will look back on this turbulent period as a turning point in our economic recovery.

Many positive initiatives have already been undertaken to ignite the national economic engine. These initiatives will help Ireland address our current challenges and enable the Government to focus on key tasks of stabilising the public finances, improving competitiveness, assisting those who lose their jobs, supporting Irish businesses, and securing additional foreign direct investment. The ultimate goal of building a ‘Smart Economy’ with a thriving enterprise sector, high-quality employment, secure energy supplies, an attractive environment, and first-class infrastructure is achievable, but only with much hard work and a clear strategic approach.

In this context, we need to be taking steps now to ensure that we have the best possible economic landscape to attract overseas investment and tourists. Anticipating business needs and putting supply ahead of demand has always been central to the Company’s activities. Balanced regional development in all parts of Ireland is fundamental to the country’s economic growth and recovery, and this has been delivered here in the Shannon Region by Shannon Development since 1959.

Celebrating 50 years

2009 was a special year for the Company as we celebrated 50 years of regional development in action. On behalf of the Board of the Company, I would like to take this opportunity to acknowledge the tremendous work undertaken by the board members, management, and staff of Shannon Development in the Shannon Region over the past 50 years. Thanks to them, the Company’s economic impact can be felt in every part of the Region.

pioneering

Over the years, the Company has pioneered development strategies and projects that have later been implemented nationally. We have worked with partners from every part of the Region to put in place a pipeline of developments, from priming property solutions at our many technology parks, industrial estates and business parks, to the development of top visitor attractions. For example, since 1989 we have assisted in the creation of a range of innovative tourism attractions and accommodation valued at over ¤600 million. Down through the years the Company has also willingly shared its regional development expertise with developing countries world-wide.

Shannon Development still continues to be pioneering and innovative today. It has evolved with the needs of the Region, and is still evolving today. The Company continues to make a valuable contribution to the economy of the Region by spearheading a range of innovative programmes. An example of this is the Shannon LNG project on the Company’s landbank in Ballylongford, Co. Kerry, which has the potential to contribute significantly to securing Ireland’s future energy supplies.

planning

Part of planning for the future requires that we take stock and analyse our strengths and weaknesses. This is a process that Shannon Development has undertaken and we will be unveiling a new Strategic Plan in 2010 to position the Region as a leading location to live, work, learn and spend leisure time.

The requirement for innovation continues to be critical as we strive to overcome difficult challenges. We have an ambitious vision and a clear strategy, and we have the ability to turn that vision and strategy into action at local and regional level. Our Region has faced many challenges over the last half century. We have always risen to them and I am confident we will do so again.

John Brassil Chairman

ChAIRmAN’S STATEmENT:FAcing chAllenges, FinDing solutions >

the CuRReNt hIgh level oF uNemploymeNt gIveS heIghteNeD uRgeNCy to ouR tASk oF eNSuRINg thAt the eNtIRe ShANNoN RegIoN IS eNAbleD to AChIeve ItS Full DevelopmeNtAl poteNtIAl.

ShANNoN DevelopmeNt IS FIRmly FoCuSeD oN FINDINg SolutIoNS to the eCoNomIC ChAlleNgeS thAt ouR RegIoN IS Now expeRIeNCINg.

2 :: shannon development annual Report 2009

enterprising.Increased R&d spend (−48m in 2009) is just one way in which shannon Free Zone companies have responded to a difficult international trading environment. at shannon development, we’re committed to supporting these businesses in preparing to reap the opportunities of the global economic recovery.


It’s the next fifty…We’re proud of our heritage of innovation and creativity, but here at shannon development, we’re very much focused on the future. When we reflect on the pace of change over our 50 years of innovation and development in the shannon Region, it suggests something of the transformation we will face in the years ahead. We are preparing to meet these challenges with renewed vigour, creativity and optimism.


For instance, to address some of the immediate challenges facing the Shannon Free Zone business community and the wider tourism industry in 2009, Shannon Development helped companies and businesses to secure √2 million support through the Government’s Employment Subsidy Scheme.

As a result of this initiative, 3,300 people will be able to continue to support themselves and their families in this Region.

Competing

Creating the necessary competitive environment to achieve regional economic development is as much about local endeavour and partnership as it is about a national strategy. Shannon Development has always recognised the importance of a partnership approach and we have forged a range of key partnerships at local, regional and national level to help deliver regional growth.

In addressing the future needs of the Shannon Region economy, Shannon Development has prepared a forward-looking development strategy. It is an ambitious plan and sets out seven key pillars for action and delivery in key sectors and areas of the Region. These pillars provide a strong action agenda for regional economic development. The Government has endorsed our strategy and given us a strong mandate to implement its key recommendations. This vote of confidence in our plans demonstrates the Government’s commitment to regional development and balanced growth throughout Ireland.

Strong and vibrant regions have a vital role to play in delivering a strong national economy. It is only by nurturing our regional economies that we can position Ireland to be ready to take advantage of the economic upturn. The work Shannon Development is doing complements the Government’s economic strategy on ‘Building Ireland’s Smart Economy’.

A key fulfilment of our development strategy is to provide business property solutions ahead of demand. This is why Shannon Development continued to invest in a range of property developments around the Region in 2009. In total, Shannon Development operates 57 business and technology parks around the Region which offer a range of property solutions for business entrepreneurs.

Stimulating tourism

With the decline in tourism numbers, we were faced with the challenge of stimulating tourism demand. We succeeded in generating over 600,000 bednights and boosted visitor spend in the Shannon Region by over ¤47 million in 2009.

2009 also marked the 50th anniversary of our foundation. As Ireland’s only regional development agency that is grounded in a single region, Shannon Development has been delivering a range of imaginative solutions to combat major challenges since its establishment by Government in January 1959. Throughout those 50 years the economic environment required innovative thinking and actions, and a large amount of risk-taking.

There have been significant changes in the economic environment at global, national and regional levels since the foundation of our Company. The economic landscape we now face requires planning of a different nature and scope to position ourselves for the recovery.

Fit for new challenges

To ensure Shannon Development is fit for purpose, we have streamlined and reorganised the Company to make it more agile and dynamic. At the heart of this is a belief in our ability as a Company, and as a Region, to successfully compete with the best. I am confident that we can continue to adapt and innovate to overcome the challenges which lie ahead. Our new Strategic Plan will put us on the right path to position the Shannon Region to take full advantage of the global economic recovery which will inevitably come.

Dr Vincent Cunnane Chief Executive

ChIEF ExECuTIVE’S STATEmENT:turning chAllenges into opportunities.reneWeD Focus, neW beginnings >

2009 pRoveD ANotheR ChAlleNgINg yeAR FoR buSINeSS SeCtoRS ACRoSS the ShANNoN RegIoN. A key FoCuS FoR ShANNoN DevelopmeNt AS the RegIoNAl DevelopmeNt AND touRISm AuthoRIty FoR the ShANNoN RegIoN wAS to pReSeRve AND pRoteCt jobS.


we belIeve It’S IN ouR poweR to Develop ouR RegIoN IN hARmoNy wIth ouR vAlueS AND vISIoN.

ShANNoN FRee ZoNe:FoSteRINg A SpIRIt oF INtellIgeNt RISk tAkINgShannon Development approves ¤15.5m investment supports for Shannon Free Zone companies

Shannon Development approved ¤15.5 million in financial supports to Shannon Free Zone companies in 2009. This support leveraged ¤57 million in investments, the largest of these was a ¤50 million R&D investment by Intel at Shannon Free Zone.

Breaking this down, 13 Shannon Free Zone companies received Shannon Development support across key areas such as R&D, management development, international marketing supports and training. These supports illustrate Shannon Development’s commitment to enable Free Zone companies prepare for the global economic recovery.

10% increase in R&D expenditure at Shannon Free Zone companies

R&D expenditure by Shannon Free Zone companies saw a 10% increase over the previous year to ¤48.6 million.

This encouraging development demonstrates the importance these forward looking companies place on R&D and highlights the continued relevance of Shannon Free Zone as a key location for R&D investment in manufacturing and international services. Given the turbulent national and international economic climate, Shannon Free Zone companies performed well during 2008 (latest available statistics), generating ¤3.5 billion in sales of which 94% were to export markets.

job creation continues to be challenging

260 new jobs were created at Shannon Free Zone in 2009. However, reflecting the extremely difficult trading environment for industry at Shannon Free Zone, in terms of sustaining employment, job numbers at the Zone fell 11% year on year, from 7,107 in 2008 to 6,320. It should be noted that almost 80% of these job losses were the result of down-sizing and not closures.

To help address some of the immediate challenges facing the Shannon Free Zone business community during the year, Shannon Development assisted 14 companies at Shannon Free Zone to secure ¤2 million support through the Government Employment Subsidy Scheme (Temporary). As a result, these companies have committed to maintaining 1,800 jobs.

Although a difficult year, there were many significant achievements by Shannon Free Zone companies during 2009 notably: the acquisition by AerCap of Genesis Leasing making it the largest quoted independent aircraft leasing company in the world; the commencement by Zimmer of the manufacture of its NexGen orthopaedic knee product line; the expansion by Geon into its own stand alone facility of 11,000 sq. ft. on Shannon Free Zone; the ¤50 million Intel investment at its R&D facility in the Shannon Free Zone which will grow Intel’s Shannon workforce by up to 134 new jobs over the next four years, bringing the total employment to approximately 300.

During the year Shannon Aerospace won a contract for maintenance checks on new British Airways business class service aircraft, transiting via Shannon International Airport. This BA service to the US is the first commercial passenger service to use Shannon Airport’s new pre-clearance facility, which Shannon Development supported.

The outlook for 2010 would suggest another difficult year ahead for Shannon Free Zone, however, considerable progress was made on marketing the Zone to potential overseas investors during 2009. Shannon Development succeeded in securing 14 itineraries from prospective new clients for the Shannon Free Zone, five of which were generated in partnership with IDA Ireland. Shannon Development is working with a number of potential new clients and existing Shannon Free Zone clients on expansions and investments.

shAnnon Development: 2009 keY result AreAs >


Invested in our Region...In a challenging environment shannon development continues to invest in jobs, assisting businesses in obtaining support and directly supporting development spending on training, international marketing, management development and R&d.

Focus in the short term is on maintenance of jobs, with an ongoing commitment to attracting overseas investors and expanding existing enterprises.


open for business…We believe it’s critically important that the Region’s businesses are supported with a suite of world-class properties and facilities; from technology enabled live/work housing, to major office and factory solutions in business park settings.


expanding the Shannon Region’s business infrastructure

Shannon Development continued to invest in the Shannon Region’s business property portfolio in 2009. The Company’s strategy is to provide world class industrial facilities to position the Region to take advantage of the global economic recovery. Shannon Development owns and manages a range of 57 Technology Parks, Industrial Estates and Business Parks in the Shannon Region across the Counties of Clare, Limerick, North Tipperary, South West Offaly and North Kerry.

AmoNg key pRopeRty INveStmeNtS uNDeRtAkeN by the CompANy IN 2009 weRe:

¤4 million expansion at tipperary technology park (ttp), thurles

A major ¤4 million expansion for Tipperary Technology Park (TTP), Thurles, Co. Tipperary, is currently underway. Shannon Development is constructing a new 21,500 sq. ft. two-storey office building at the Park, and work is near completion. This will be the third building on the business campus and is part of the Company’s continued development of its Knowledge Network of five key business and technology parks around the Shannon Region.

¤3 million tarbert e-town project to offer a better quality of life

Shannon Development completed work on a new ¤3 million E-Town development in Co. Kerry. The project involved the construction of a small cluster of 8 tailor-made live/work houses on a 1.3 acre site on the Ferry Road in Tarbert, Co. Kerry. The project will enable business people achieve a better work/life balance and in doing so bring new economic activity back into the local community. Shannon Development has worked closely with Tarbert Development Association who are fully behind the project.

As part of its investment in the Tarbert E-Town project, Shannon Development launched a dedicated E-Town community website for Tarbert and 12 volunteers within the community received training in web authoring to manage and update the website, www.tarbert.ie.

ten acre extension to Newcastle west business & technology park complete

Shannon Development has completed work on a 10 acre extension of Newcastle West Business and Technology Park, Co. Limerick. The development of the Park is an integrated element of Shannon Development’s strategy for the economic development of the town.

¤3 million Roscrea business and technology park gets marketing boost

Roscrea Business and Technology Park is situated in a prime location at Benamore, on the Dublin side of Roscrea. The 26 acres development site is being promoted to industrialists by Shannon Development in conjunction with IDA and Enterprise Ireland. Several enquiries have already been received. Shannon Development, with Roscrea Chamber of Commerce, is developing an investment attraction brochure to showcase Roscrea and highlight the town’s attractiveness for inward investment.

International Science Centre at Ntp proving to be a valuable resource

Shannon Development is pleased with the response from clients to its newly revamped International Science Centre at the National Technology Park, Limerick. The centre was fully occupied during its first full year of operation since the revamp and among its clients are Powervation, an internationally traded company which was named ‘Company of the Year 2009’ at the Irish Technology Leadership Group Irish Times Innovation Awards.

expansion at kilmallock business and technology park, Co. limerick

During 2009 work was completed on a major expansion at Kilmallock Business and Technology Park, owned and managed by Shannon Development. The project involved the provision of infrastructure to an additional 13 acres adjoining the existing 14 acres already developed. The extension now provides nine new sites for enterprise development.

Nine development sites completed at Smithstown, Shannon, Co. Clare

Work was completed on the development of nine fully serviced sites for new enterprise development at previously undeveloped lands at Smithstown in Shannon. Situated in a prime location between Smithstown and Shannon Free Zone East, these high quality sites are being actively marketed by Shannon Development.

propertY Development:positioning the region For recoverY >

ShANNoN DevelopmeNt INveSteD ¤9.6 mIllIoN IN 2009 AS pARt oF ItS StRAtegy to pRovIDe A RANge oF leADINg-eDge buSINeSS pRopeRty SolutIoNS FoR INDIgeNouS AND FoReIgN DIReCt INveStmeNt CompANIeS. the INveStmeNt wAS mADe IN CApItAl expeNDItuRe oN buIlDINg AND INFRAStRuCtuRAl pRojeCtS ARouND the ShANNoN RegIoN DuRINg the yeAR.


tourism Development: trAnsForming our economY using our greAtest resource, ourselves >

The continued downturn in world tourism has been felt in every corner of the globe during 2009 including Ireland and the Shannon Region.

However, the Shannon Region Tourism industry still attracts two million visitors generating up to ¤579 million in revenue annually. In addition the Shannon Region tourism industry continues to be a major employer with an estimated 25,000 people in circa 1,000 companies. Although final tourism statistics for 2009 are not yet available, overall visitor numbers to the Shannon Region are expected to be down in line with tourism results nationally.

Shannon Development own brand tourism initiatives yield results

In response to the continued economic challenges facing the Shannon Region tourism industry in 2009, the Company undertook a series of tourism boosting initiatives in domestic and overseas markets. As a result of these initiatives Shannon Development directly succeeded in generating ¤47 million in tourism revenue for the Region, on top of the ¤43 million delivered by the Company in 2008.

In 2009 Shannon Development’s tourism campaigns succeeded in attracting almost 315,000 visitors and generating almost 600,000 bednights for the Shannon Region. In addition to its own initiatives, Shannon Development continued to work with Tourism Ireland and Failte Ireland to support a range of national and international radio, TV, print and online promotional campaigns.

Shannon Development undertook a major targeted drive to stimulate additional tourism business for Shannon Airport and the Shannon Region. Among the targets achieved by the Company in 2009 was the signing and implementation of 38 separate national and international tourism marketing agreements with airlines, tour operators, travel agents, corporate businesses and air holiday companies in North America, Great Britain, Europe and Ireland.

During the year Shannon Development undertook focused advertising, e-marketing, travel media familiarisation trips and a range of domestic and overseas tourism trade campaigns. For example, the tourism marketing team attended 46 national and international trade and consumer tourism events in nine countries to sell the Shannon Region as a tourist destination to over 2.6 million potential visitors. The Company also supported over 50 national and international travel media visits to the Region, in conjunction with Tourism Ireland and Failte Ireland, which resulted in over 1,000 major articles and broadcasts worth over ¤30 million in Equivalent Advertising Value. Among these was the BBC Three Men Go To Ireland which was seen by over six million people in the UK.

Shannon Development hosted 12 trade/sales workshops in the Shannon Region including the French Connect workshop which brought together key players in the European low cost aviation sector, and a group of senior buyers from the top 20 British Coach Tour Operators.

A new initiative in the US market saw the commissioning of a sales representative to target over 2,000 high-end travel agents to promote the Fly Shannon message and the new customs and immigration facility at Shannon Airport. The aim of the campaign was to attract business from the East coast of the US to Shannon.

During the year Shannon Development established a North American Advisory Council comprising business leaders in tourism and industry throughout the US, all of whom have a connection with the Shannon Region. This initiative has already started to open up tourism and business opportunities for the Shannon Region.

In 2009 the Company undertook a major joint marketing campaign with Ryanair on their UK and German routes into Shannon Airport which yielded 240,000 inbound passengers up 33% on the previous year, resulted in 336,000 bednights up almost 30% on 2008 and almost ¤27 million in tourism spend for the Shannon Region, an increase of almost 30% on the previous year.

Continuing to support the development of business tourism

In late 2009 the Company, in partnership with the Shannon Region Conference and Sports Bureau launched a Sports Ambassadors programme, the first of its kind in Ireland. The new initiative is designed to drive more sports tourism to the Shannon Region, the sports tourism market is estimated to be worth ¤60 million to the Shannon Region economy. The launch was attended by high profile sports personalities including Keith Wood, Packie Bonner and Peter Clohessy who were among the first to sign up to become sports ambassadors for the Shannon Region.

A total of 19 conferences and events were secured for the Region by the Shannon Region Conference and Sports Bureau, which is supported by Shannon Development. These events attracted 4,000 delegates, generated 10,000 bed nights and generated ¤6 million in revenue.

Shannon Development supported tourism events

In 2009 Shannon Development directly supported in excess of 30 major festivals and events around the Shannon Region, among them were: the World Dancing Championships held in Ennis in April which generated an estimated ¤4.5 million economic boost for Co. Clare; the Pig n Porter Festival in Limerick, the largest tag rugby event of its kind in the world which attracted over 120 national and international teams; the Mid-Ireland Golf Festival held in Birr, which attracted over 300 UK golfers and generated a ¤400,000 boost for the local economy; the King of Clubs on Lough Derg, one of Ireland’s most prestigious international coarse angling competitions, which attracted over 300 competitors. These events benefit a range of tourism and service sector businesses including accommodation providers, bars, restaurants and visitor attractions.

Shannon Development strengthens ties with Shannon Airport

The Company has always worked closely with Shannon Airport Authority to stimulate demand for Shannon Airport. To strengthen this working relationship, Shannon Development signed a joint marketing agreement with the Airport Authority in early 2009. In late 2009, the Minister for Transport, Noel Dempsey TD, appointed Dr Vincent Cunnane to the Board of Shannon Airport Authority. Dr Cunnane joins his Shannon Development colleague Olivia Loughnane on the Board.

the touRISm INDuStRy CoNtINueS to mAke A vAluAble CoNtRIbutIoN to the ShANNoN RegIoN eCoNomy, DeSpIte globAl DowNtuRN.


Welcome...In the shannon Region we love a party. With over 30 festivals (of music, fishing, rugby, dancing, golfing, to name but a few) supported by shannon development, we are stimulating business for the Region’s tourism and service sector. and, of course, proudly contributing to the rich culture of our Region.


piloting new technology to promote tourism

During 2009 in a bid to make it easier for visitors to get accurate tourist information digitally, Shannon Development and North Tipperary County Council became the first state agency and local authority in Ireland to use satellite navigation systems to map visitor attractions, activities and accommodation. In a unique partnership between the bodies, over 220 points of interest in the North Tipperary area were made available to in-car satellite navigation systems.

Working through their Shannon Broadband Company, Shannon Development uploaded a range of tourist information as part of a pilot project. The aim of the project was to address the deficit of information in rural Ireland for Sat Nav users. This venture has proved so successful that the Company plans to roll out this new technology throughout the Shannon Region.

Shannon Development is also involved in other technology programmes to promote tourism. The use of digital technology forms part of the Shannon Region Trails Programme, launched in 2007 by Shannon Development to develop and promote a series of world class cycling, walking, and water trails (canoeing and surfing) around the Shannon Region. Some of the trails have been digitally mapped using Sat Nav devices to ensure maximum usability and accessibility of the trails, to the public. The public can access the trails digitally from various websites and download the trails to their GPS units prior to visiting the trails. This is of particular interest to people who participate in outdoor sports such as hill walking and mountain biking.

touRISm pRoDuCt DevelopmeNt As the tourism authority for the Shannon Region, Shannon Development supports a range of Shannon Region tourism entrepreneurs to develop tourism projects and secure Eu grant funding. Between 1989 and 2009, over 200 projects were assisted with grants of ¤54 million which secured a total investment of over ¤600 million.

¤2 million Shannon Region International trails programme on track

Work on the Shannon Development initiated ¤2 million Shannon Region International Trails Programme progressed in 2009. The programme was devised to grow visitor numbers and secure long term sustainable economic benefits for less developed areas of the Shannon Region. Trail guides were completed for all new trails and the trails website, www.shannonregiontrails.ie, was further developed in 2009.

During the year, six new loop walks were opened in counties Clare, Limerick and North Tipperary. Two cycling hubs at Doolin in North Clare and Nenagh in North Tipperary were launched, and a further two cycling hubs at Kilmallock, Co Limerick and Birr, Co Offaly were nearing completion at year end. County Clare cycle routes received an additional boost when they were voted one of the world top ten in the Lonely Planet’s Best in Travel 2010 guide.

Progress is ongoing on upgrading the Region’s eight national waymarked ways including works carried out on the Burren Way, Lough Derg Way, Slieve Felim Way and Ballyhoura Way. Over 511,000 overseas visitors participate in walking holidays in Ireland annually generating an estimated spend of ¤340 million.

To-date over 50 projects involving overall partnership investment of ¤4.2 million have been developed under the Shannon Region Trails Programme and the majority were nearing completion at the end of 2009, among these: 30 looped walks in Counties Clare, Limerick, North Tipperary and South Offaly, with the overall Burren walks project including the very successful Walkers Welcome Scheme launched in 2009; Four cycling hubs involving up to 20 loops at Doolin,

Nenagh, Kilmallock and Birr with the completed projects at Nenagh and Doolin launched in 2009; A new cycle track from Shannon Airport to Ennis was further developed in 2009; The Great Southern Trail project was completed as a dedicated 26km traffic free walking and cycling track; Further work was completed on the Ballyhoura Mountain bike trail which attracted up to 20,000 visitors during 2009.

mid-Shannon tourism Investment Scheme

Significant promotion of the Mid Shannon Tourism Investment Scheme was undertaken by Shannon Development in 2009. This included a series of seminars and advice clinics around the Shannon Region to brief potential project promoters in terms of finding suitable projects for the scheme which has been extended until May 2010.

the burren

2009 saw further advancement of Phase 1 of the Burren Connect project by Shannon Development, in partnership with Clare County Council and the Geological Survey of Ireland. Key elements included new parking areas, visitor information, new signage, improved driving routes, and new web facilities. This follows the implementation in 2007 of a ¤1.6 million tourism branding strategy for the area involving signage and the development of digital information hubs at five locations around the Burren. In addition Shannon Development, in association with the Burren Connect project group, participated in the Burren Eco Tourism Pilot Project to develop an eco tourism brand for the Burren.

tourism Development >


lakelands and Inland waterways Initiatives

Fáilte Ireland and Waterways Ireland, in association with Shannon Development, Fermanagh Tourism, Tourism Ireland and Northern Ireland Tourist Board, are continuing to participate in a marketing campaign to promote the complete navigable Lakeland and Inland Waterways from Lough Erne to Limerick City. Under the banner of Lakelands and Inland Waterways, the steering group’s tourism campaign involves; national TV advertising, destination marketing print pieces, promotions at key travel shows, as well as print media and PR support.

Delivering NDp tourism Infrastructure Scheme

Shannon Development’s tourism product development team continue to develop, promote and secure strategic projects and initiatives targeted to achieve the Company’s objective of a balanced spatial spread of tourism development across the Region. In 2009 Shannon Development, in partnership with Shannon Region County Councils and other agencies, completed 20 projects approved under the NDP Tourism Infrastructure Fund. To-date, Shannon Development has assisted tourism product promoters with grant support of ¤6 million generating an ¤8 million investment in a range of projects. Projects completed under this scheme include: Lough Boora and Shannon Harbour Co Offaly; Terryglass Harbour amenity facilities and Lake Lookout in North Tipperary; amenity areas in Glin and Lough Gur in County Limerick; the restoration of Clancy Strand in Limerick; angling projects, and historic town trail projects at Kilrush and Ennis in Co Clare.

employment Subsidy Scheme for tourism

In December 2009 the Department of Enterprise Trade & Employment announced the extension of the Employment Subsidy scheme to include all sectors of the economy including tourism businesses. Following the announcement Shannon Development actively worked with the tourism trade in the Region to advise and assist potential applicants. A significant number of tourism companies applied for funding under the scheme and committed to maintaining over 1,500 jobs.

Shannon heritage

Shannon Heritage, the tourist and heritage subsidiary of Shannon Development continued during 2009 to enhance its eight day visitor attractions and four evening entertainment venues around the Shannon Region. The Shannon Heritage operation is vitally important to tourism in the Region as it continues to annually contribute an estimated ¤20 million to the local economy in resulting revenue. The Company employs a total of 300 people in peak season but on top of this would indirectly support many more jobs in the wider Region.

Reflecting the downturn in the tourism industry, Shannon Heritage recorded a decrease in 2009, but despite this the Shannon Development tourism subsidiary attracted over 440,000 visitors to its range of visitor attractions and evening entertainments. As a result of the downturn the Company has developed a range of new initiatives to attract new customers. For example a new online reservations system was introduced across all sites, which is already proving extremely effective. The Company continued to be innovative in its operations and introduced a number of new product offerings particularly on the domestic market. Continuing to innovate will be crucial moving forward into an even more difficult tourism climate next year.


next generation thinking.Investment and research in green energy generation, efficiency and technology infrastructure will form a central part of our strategy for sustainability and energy security for the people of the shannon Region.


Shannon Development to lead major eu energy Saving Initiative

The Eu estimates that ¤100 billion is wasted every year because of energy inefficiencies, but this may become a thing of the past as Ireland is to lead a major new green energy initiative to help industries across Europe become more energy efficient.

Led by Shannon Development, a steering group was set up in 2009 and comprises representatives from eight countries, Ireland, UK, Finland, Italy, Slovenia, Hungary, Estonia and Bulgaria. Called Regional Cluster for Energy Planning, the group will develop a new policy tool which will be rolled out across Europe to integrate energy policy with regional policy.

Shannon Development secures eu support for european biomass Study

Shannon Development secured EU support in 2009 for an important European biomass study into how best to accelerate research into increasing the amount of fuel generation from biological material such as trees, plants, and municipal waste. Led by Shannon Development, the project comprises partners from Denmark, Hungary and Bulgaria.

The role of biomass will be critical in future years as Ireland and Europe looks for new green energy sources. The biomass study has potential to yield long term economic benefits, promote green energy, and yield much needed new jobs in the renewable energy sector. The study, supported by the EU Seventh Framework Programme (Regions of Knowledge), is expected to be complete in 2011.

kerry Deepwater Zone

Shannon Development has granted a purchase option on 281 of its 600 acre landbank at Tarbert/Ballylongford on the Shannon Estuary to Shannon LNG, an Irish subsidiary of Hess LNG Limited, who propose to build a ¤500 million liquified natural gas (LNG) receiving terminal.

Having secured planning permission for the LNG terminal, Shannon LNG was granted planning permission for the Shannon Pipeline, a 26 km pipeline between the proposed terminal and the National gas grid, in February 2009. In late 2009 the Commission for Energy Regulation awarded approval to construct the pipeline.

When complete, the Shannon LNG project will provide a significant part of Ireland’s projected gas needs, resulting in a downward pressure on price and increased security and diversity of Ireland’s energy supply.

neW energY Focus:using WhAt We hAve, in A neW WAY >

the ShANNoN RegIoN, AND IN pARtICulAR the ShANNoN eStuARy, hAS eNoRmouS poteNtIAl to be the leADeR IN the geNeRAtIoN oF SuStAINAble eNeRgy IN IRelAND.

IN 2009, ShANNoN DevelopmeNt eStAblISheD A DeDICAteD IN-houSe teAm to woRk wIth eNeRgy INDuStRy pARtNeRS AND plAyeRS to eNSuRe thAt we Fully utIlISe the RegIoN’S SIgNIFICANt ADvANtAgeS IN teRmS oF SuStAINAble eNeRgy geNeRAtIoN oveR the ComINg yeARS.


A strong region requires a strong core and Shannon Development’s objective is to grow the Greater Limerick Area – which incorporates the city and county – into a vibrant and successful economic location.

promoting limerick as a business and tourism location

The Division will focus on key areas including the development of new business opportunities through the development of business, sports, arts and cultural linkages with other cities. In addition to highlighting the attractiveness of Limerick as an investment location, the Limerick Development Division will work closely with key partners to develop and support marketing programmes and events aimed at offering diversity and quality in what the city offers to visitors and investors.

Limerick is renowned as a centre of sporting excellence, underpinned by passionate supporters. The Limerick Development Division intends to capitalise on this to bring sports related events to Limerick. In this regard, the successful 2009 launch of the Sports Ambassadors Programme in partnership with the Shannon Region Conference and Sports Bureau is expected to yield dividends in terms of greater sports driven tourism in Limerick in 2010 and beyond.

During 2009, to increase its tourism promotion of the Greater Limerick Area, the Limerick Projects and Promotions team within the Limerick Development Division actively worked with tourism promoters and event organisers supporting a series of events. These included the Adare Village Festival, Limerick’s Springfest and Riverfest, the Cappamore and Limerick shows, the launch of Ireland’s first Georgian Christmas Market, and the new Winterfest. The team highlighted the Limerick tourism brand at a number of national tourism promotions during the year, including at the World Travel Market in London.

Developing limerick’s business Infrastructure

The National Technology Park (NTP) in Limerick and Raheen Business Park are two of the biggest business parks in Ireland and are owned and managed by Shannon Development. During 2009 NTP continued to be a key economic driver for Limerick and the wider Shannon Region. Over 3,000 people are employed at the Park in a mix of indigenous enterprise, foreign owned industry, research, education and training companies. Among the largest companies in the Park are Vistakon and Cook Ireland Ltd, supported by IDA Ireland and employing over 1,100 in total. Seven new start up companies commenced at NTP Limerick InnovationWorks in 2009 with a further two new companies setting up on the Park.

In late 2009 Shannon Development began work on designing a Masterplan for a major site at the National Technology Park. The intention is to develop this site as the Shannon Region’s Strategic Site aimed at attracting large-scale Foreign Direct Investment from the rapidly expanding global Life Sciences sector including, in particular, major Corporations involved in Medical Technologies and Biopharmaceutical manufacturing / R&D activities.

Raheen business park

In 2009, Shannon Development completed a major refurbishment of its Food Centre in Raheen Business Park, Limerick, which resulted in the refurbishment of four units to food processing standard, and general infrastructure upgrading works including new landscaping.

Restored Clancy Strand reopened

May 2009 saw the re-opening of the restored Clancy’s Strand, a collaborative project, administered by Limerick City Council, with a grant of ¤1.6 million secured by Shannon Development towards the ¤2.1 million overall cost of the project. The grant was secured under the NDP 2007 – 2013 Tourism Infrastructure. The Clancy’s Strand development marks phase one of the Riverside Improvement Strategy for Limerick City.

SuppoRtINg the mID weSt tASk FoRCeIn early 2009, in the wake of 1,900 job losses at Dell, mary Coughlan TD, Tánaiste, and minister for Enterprise, Trade and Employment, established the mid West Task Force led by well known businessman Denis Brosnan. Dr Vincent Cunnane, Chief Executive, Shannon Development, was appointed chief executive of the Task Force. During the year Shannon Development assisted the Task Force in its work.

Presentations from 24 groups, representing the major stakeholders and interest groups involved in economic and social development in the Mid West, were received by the Task Force during the year. The Task Force published its Interim Report last summer, and among its recommendations were an acceleration of Limerick’s regeneration plans, the establishment of a commission to examine governance of the greater Limerick area, and government funding for the Lynxs Cargo Hub project at Shannon Airport and marketing funds to promote the Airport as the gateway for international traffic to the Midwest and West of Ireland.

limerick: neW Development Division >

to INCReASe ItS FoCuS oN the gReAteR lImeRICk AReA, ShANNoN DevelopmeNt eStAblISheD A New DeDICAteD lImeRICk DevelopmeNt DIvISIoN IN 2009.


bRoADbAND CoNNeCtIvIty IN the ShANNoN RegIoN Shannon Broadband Ltd, the public sector consortium led by Shannon Development in partnership with the Regions’ local authorities, laid a network of 52kms of fibre optic cable in eight Shannon Region Towns, an investment of ¤12 million which was completed in 2008.

In 2009 Shannon Development through Shannon Broadband Ltd commenced the hand over process of the eight Phase 2 MANs (Metropolitan Area Networks) to the Limerick based company Enet. Enet, which manages Phase 1 of the State’s MANs, including Shannon Broadband’s Limerick MAN, was appointed by the Government in 2009 to manage, maintain and market Phase 2 of the programme which covers an additional 66 towns.

This will now enable industry, businesses and telecom wholesalers in the Shannon Region to avail of advanced telecom technologies capable of delivering cutting-edge communications and information services in the Region.

In total ¤18.5 million was invested by Shannon Broadband in the Shannon Region 109km fibre based MANS networks since the commencement of the State’s MANs programme sponsored by the Department of Communication Energy and Natural Resources and the EU European Regional Fund.

CoNtINuINg to INveSt IN the kNowleDge NetwoRk Shannon Development operates a knowledge network of five business and technology parks in Limerick, Clare, Tipperary, Offaly and North Kerry, at strategic locations around the Shannon Region. Each Park comprises cutting edge business facilities designed to meet the needs of investors and enterprises in the Knowledge Age.

These are: Tipperary Technology Park, in Thurles; Kerry Technology Park in Tralee; the National Technology Park, Limerick; Information Age Park, Ennis, and Birr Technology Centre. The Knowledge Network incorporates an InnovationWorks at each location which supports new, high-potential knowledge-based businesses through the crucial start-up phase and early years of their development.

Today Shannon Development’s Knowledge Network of business and technology parks across the Region employ over 3,600 people.

The Knowledge Network is a long term investment providing facilities and support systems required by entrepreneurs. In 2009 the network has seen substantial growth with 18 new client companies being facilitated by Shannon Development. In addition, a further 12 companies, already established, expanded into new accommodation on the parks.

tipperary technology park (ttp), thurles, Co. tipperary

Over 150 people are employed at the Park generating significant local economic impact. A major ¤4 million expansion for Tipperary Technology Park (TTP), Thurles is currently underway. This will be the third building on the business campus and is part of the Company’s continued development of its Knowledge Network.

kerry technology park (ktp), tralee, Co. kerry

Kerry Technology Park companies performed well during 2009 despite the difficult economic environment. Over 300 people are employed at KTP and during 2009 a number of companies including Aspen Connect, Donseed, Altobridge and Saorgus Energy expanded and recruited additional staff. Altobridge became the third company based at KTP to win the emerging category section in the 2009 Ernst & Young Entrepreneur of the Year Awards.

During the year Shannon Development teamed up with Kerry entrepreneur Jerry Kennelly and the Institute of Technology Tralee to launch the groundbreaking Endeavour programme. Also supported by Enterprise Ireland and local entrepreneurs, the programme is designed to offer a range of supports to help fast-track globally scalable technology start-ups, and attracted 15 new fledgling businesses from all over the country who now have use of hot desk facilites at KTP and the Tom Crean Centre.

the National technology park (Ntp), limerick

The National Technology Park Limerick continued to be a key economic driver for Limerick and the wider Shannon Region during 2009 (as reported in Limerick Development section).

Information Age park ennis (IApe), Co. Clare

The Information Age Park Ennis is a 34 acre urban business campus. It has been constructed to provide high quality business space suitable for a range of technology, financial and internationally traded services. The park comprises two buildings, with a total of 23 suites, ranging in size from 244 to 4,104 sq. ft. 17 suites are currently occupied with a number of other enquiries in the pipeline. In addition the facility offers shared turnkey office facilities for start up entrepreneurs. There are currently four of these in IAPE and three of these are now occupied. The Park’s state of the art facilities are used by both internal and external clients, and are used extensively by community groups.

birr technology Centre

Birr Technology Centre is a facility that offers a prestigious image and a quality working environment, as well as state-of-the-art infrastructure for businesses. The Knowledge Network incorporates InnovationWorks, which supports new, high-potential knowledge-based businesses through the crucial start-up phase and early years of their development. Companies in Birr Technology Centre employ over 80 people.

broADbAnD the knoWleDge connectivitY > netWork >


FinAnciAl YeAr 2009:the YeAr in pictures >

tánaiste highlights the importance of regional development at Dynamic regions conference

The vital contribution Regions can make to Ireland’s national recovery was the main theme to emerge at a Shannon Development conference in November 2009 which brought together national and international experts in the field of regional development to chart future directions. The Shannon Development Dynamic Regions Conference, organised to mark the Company’s 50th anniversary, was addressed by Mary Coughlan TD, Tánaiste and Minister for Enterprise, Trade and Employment who is pictured here with Dr Vincent Cunnane, Chief Executive, Shannon Development.

let’s get Digital

Tourism boost for North Tipperary as tourism sites go digital. Shannon Development and North Tipperary County Council came together to put North Tipperary Tourist attractions firmly on the digital map. At the launch of the new project which sees 220 attractions in the area now available on Sat Nav systems are (left to right) Adam Skerritt, Shannon Development; Terry O’Niadh, County Manager, North Tipperary County Council; Attracta Lyons, North Tipperary County Council; John King, Assistant Chief Executive Shannon Development; Teresa Nash, Shannon Broadband Ltd; Alice Morgan, Shannon Development; and Ken Stockil, Shannon Broadband Ltd.

north clare Walking trail

A number of initiatives in walking and cycling trails were undertaken in 2009 as part of Shannon Development’s Shannon Region Trails Programme. Visitors pictured enjoying a walking holiday in North Clare.

sports stars line out as sports Ambassadors

Sports legends Keith Wood, Packie Bonner and Peter Clohessy were among a host of sports stars to sign up to become Ireland’s first Sports Ambassadors. The new Programme, the first of its kind in Ireland, was launched in Limerick in a bid to grow the number of sports events in the Shannon Region. The Sports Ambassadors programme has been devised jointly by Shannon Development and the Shannon Region Conference and Sports Bureau, to increase the Shannon Region’s share of the lucrative national and international sports tourism market. Pictured at the launch of the new Shannon Region Sports Ambassadors Programme are (left to right) Irish and international soccer star Packie Bonner; Sean Lally, Chairman Shannon Region Conference and Sports Bureau; rugby legend Keith Wood; hurling star Brian Whelahan; rugby star Peter Clohessy; and Dr Vincent Cunnane, CEO of Shannon Development.

shannon Development targets key Dublin businesses

Dublin businesses told of benefits of working globally from a regional location. Dr Vincent Cunnane, Chief Executive, Shannon Development is pictured here (centre) showing Dublin-based business people that they can work from a Shannon Region base and still have the world in the palm of their hands. Left is Marie Ormonde from Data Ireland, and (right) Owen Murphy from ACT Venture Capital, at a Shannon Development Knowledge Network event at the Citywest Hotel, Dublin.

gearing up

Launching the new Nenagh cycling hub in May 2009 were (left to right): Bernie Leonard, Tourism Officer, Shannon Development; Lorraine Treacy, Staff Officer Nenagh Town Council; Elaine Cullinane, Sports Co-ordinator North Tipperary Sports Partnership; Virginia O’Dowd, Town Mayor; Paddy Heffernan, Town Manager; Donal Purcell, Town Clerk; Michael Molampy and Attracta Lyons, Administrative Officer, North Tipperary County Council.


Joint marketing arrangement between shannon Development and shannon Airport

Two of the West of Ireland’s key economic drivers, Shannon Development and Shannon Airport Authority, launched a joint marketing initiative aimed at boosting the Region’s economy. The two companies signed a marketing agreement which will see them work closer than ever on initiatives to get the best possible return for Shannon Airport and the West of Ireland. Pictured (left to right) are Martin Moroney, Shannon Airport Director; and Dr Vincent Cunnane, Chief Executive, Shannon Development.

tánaiste Jobs

In February 2009 Tánaiste and Minister for Enterprise, Trade and Employment Mary Coughlan TD, announced 50 new jobs for Shannon Free Zone and marked Shannon Development’s 50th anniversary. Pictured (left to right) Dr Vincent Cunnane, Chief Executive, Shannon Development; Tánaiste Mary Coughlan TD; John Brassil, Chairman, Shannon Development; and Frank Larkin, Corporate Communications Manager, Shannon Development.

Winner of the shannon Development holiday snap photo competition

During 2009 Shannon Development ran a ‘Holiday Snaps’ photo competition which attracted over 1,000 entries. The competition invited people to submit their favourite holiday photographs from around the Shannon Region. This collection of truly stunning photos will form part of Shannon Development’s future tourism marketing promotions at home and overseas, and will be used in a range of print and online Shannon Region promotional campaigns. Viv O’Connor, originally from the UK, now living in Puckane, North Tipperary, is pictured during the prize presentation with John King, Assistant Chief Executive, Shannon Development.

cycling legend greg lemond trying out the shannon region cycle trails

Cycling legend Greg LeMond, three times winner of the Tour de France, took time out to try the new Shannon Region cycling trails. Pictured here in Co. Clare are (left to right): John King, Assistant Chief Executive, Shannon Development; Flan Quilligan, Tourism Product Development Manager, Shannon Development; Greg LeMond; and Pat Daly, Tourism and Marketing Manager, Shannon Development.

knappogue castle is tops with tourists

Shannon Heritage, Shannon Development’s tourism subsidiary company, scooped a National ‘Excellence’ Award for the best dinner entertainment in Ireland. The award came in recognition of their medieval banqueting operation at 15th century Knappogue Castle in Co. Clare. Sponsored by CIE Tours International, the National Awards of Excellence are unique as they are based on the personal experiences of customers of CIE Tours. Pictured at the award presentation are (left to right); Alison Bowyer, Duty Manager Knappogue Castle; Brian Stack, Managing Director CIE Tours International; Deirdre Stephenson, Evening Products Manager, Shannon Heritage; and Ken O'Shaughnessy, Butler, Knappogue Castle Banquets.

shannon Development congratulate Altobridge

Dr Vincent Cunnane, Chief Executive, Shannon Development; Mike Fitzgerald, CEO of Altobridge; entrepreneur Jerry Kennelly; and John Brassil, Chairman, Shannon Development; pictured congratulating Mike Fitzgerald CEO of Altobridge, on his Ernst & Young Emerging Entrepreneur of the Year award. Altobridge is the third company based at Shannon Development’s Kerry Technology Park (KTP) to have won an Ernst & Young Entrepreneur of the Year Award, proving that Kerry entrepreneurs continue to have the cutting edge.


compAnY orgAnisAtion:At 31 December 2009 >

boARD

In accordance with the Company’s Articles of Association, Directors are appointed by the Minister for Enterprise Trade and Employment after consultation with the Minister for Finance and the Minister for Arts, Sports and Tourism. The Directors at the 31st of December 2009 were:

J Brassil Chairman

t Barrett

p Collins

R downer

J Ferriter

n Foran

B Keane

W loughnane

p o’Brien

J Reynolds

d sadlier

p shanahan

Company Secretary t Ross

boARD CommItteeSAudit committee

T Barrett Chairman

P Collins

J Ferriter

The Audit Committee exercises powers delegated to it by the Board to oversee the financial reporting process and the Company’s system of internal controls.

economic Development and innovation sub-committee

R downer Chairman

p Collins

p shanahan

This Sub-Committee of the Board exercises powers delegated to it by the Board to undertake specific tasks in the economic policy area.

regional Development through property sub-committee

P O’Brien Chairman

J Brassil

N Foran

This Sub-Committee of the Board exercises powers delegated to it by the Board to oversee the property related activities of the company.

remuneration committee

J Brassil Chairman

T Barrett

B Keane

This Sub-Committee of the Board exercises powers delegated to it by the Board to review the remuneration and performance of the Chief Executive and to oversee the selection process for appointment of a new Chief Executive.

executive committee

V Cunnane Chief Executive Chairman

J King Assistant Chief Executive

J Kearns Finance and Procurement manager

The Executive Committee is the senior executive body in the Company and exercises specific powers delegated to it by the Board.

left to right (top): John Brassil; pat Collins; dick sadlier; Roger downer; Joan Reynolds; Bob Keane.

left to right (bottom): paul o’Brien; noreen Foran; Willie loughnane; tom Barrett; John Ferriter; pat shanahan.


compAnY orgAnisAtion >

SubSIDIARy CompANIeSThe Company has a number of subsidiary companies with specific objectives relating to its overall tasks of securing sustainable economic growth within the Shannon Region.

The following is a list of the subsidiary companies, together with their directors, that were trading at 31st December 2009:

shannon castle banquets and heritage ltd.

J Reynolds Chairperson

F Brennan

V Cunnane

J Ferriter

J King

W Loughnane

J madden

Company Secretary K macNamara

The Company is responsible for the development and operation, on a commercial basis, of the Company’s day visitor attractions and evening entertainments to the highest standards.

kilrush creek marina ltd.

J Reynolds Chairperson

F Brougham

P Daly

F Larkin

T Prendeville

m Reidy

Company Secretary T Ross

The company is responsible for the promotion and management of Kilrush Marina as an integrated marine related tourism and recreational services project.

the national technology park limerick ltd. (formerly The National Technological Park Plassey Ltd.)

R Downer Chairman

V Cunnane

m mcKenna

E Prendergast

J O’Connor

Company Secretary T Ross

This company is responsible for the overall development of the National Technology Park in Limerick, and draws upon inputs from the University of Limerick, IDA Ireland, Enterprise Ireland, and the private sector.

the shannon regional tourism board

The Shannon Regional Tourism Board was established by Shannon Development in December 2006 to advise and assist in the development of tourism strategies and plans for the Shannon Region. The members of the Regional Tourism Board at 31 December 2009 were:

m houlihan Chairman

R Byrne

J Concannon

T Coughlan

m Fitzgerald

G Flynn

W Loughnane

P mcmahon

T O’Niadh

P Shanahan

m Vaughan

best practice

The Company is committed to Best Practice Policies and Procedures in all its activities.

Worker participation (state enterprise) Act 1988

Shannon Development is committed to Partnership, as an inclusive process, that involves common ownership of the resolution of challenges facing the Company involving the direct participation of management, staff, staff unions and an investment in their training, development and working environment.

Partnership assists in the implementation of change and modernisation in the company and provides a way for input into the development of organisational strategy. It is a forum for consultation and participation on major strategic proposals and assists in enhancing communications and participation.

employment equality/Diversity

The Company is an equal opportunities employer and continues to ensure that all its policies and procedures in this regard are in line with legislation and best practice.

customer service charter

The Company’s Customer Service Charter is available at Company offices and on the Company’s website. A Formal Complaints and Appeals Procedure is in place as part of this Charter.

health and safety

The aim of Shannon Development is to develop a healthy and safe workplace. It is the policy of Shannon Development in so far as reasonably practicable, to seek and provide safe and healthy working conditions for all Employees, Contractors and Visitors and to enlist the active support of Employees, Contractors and Visitors in achieving such conditions.

The health and safety of the Company’s employees are safeguarded through strict adherence to health and safety standards. Standards in relation to health and safety are based on requirements of employment legislation, including the Safety, Health and Welfare at Work Act, 2005 and all other relevant statutory provisions and codes of practice.

The Company approved a Safety Management System Policy Document which is being implemented.

The Access Officer is addressing requirements of the Disability Act 2005 following audits of all buildings where staff are located.

staff numbers

Average Number of Persons Employed by the Group

2009 2008

Shannon Development 126 138

Shannon Development Subsidiaries 167 197

293 335

This figure includes the number of whole time staff, plus the number of seasonal staff converted to full time equivalents, employed by the group.

ethics in public office Act 1995

In accordance with the Ethics in Public Office Act 1995, Shannon Development directors, and staff holding designated positions, are required to complete statements of interest in compliance with the provisions of the Act.


Company

Aon Insurance Managers (Shannon) Ltd*

Beta Layout Ltd*

Connor-Winfield Ltd*

Element Six Ltd*

Geon Engineering Ltd

Hamilton Sundstrand Shannon

Intel Shannon Ltd

Kraus & Naimer Production Ltd*

Kwik Lok (Ireland) Ltd*

Lufthansa Technik Turbine Shannon Ltd**

Melcut Cutting Tools Ltd**

Molex Ireland Ltd**

Pacific Network Services (Europe) Ltd*

PC Tools Ltd

Phardiag Ltd*

PAFS Ireland Ltd

SPS International Ltd. t/a Hi Life Tools*

Reagecon Diagnostics Ltd**

Shannon Aerospace Ltd**

Smart Electronics Ltd

Solatrex International t/a Calcul*

Surpex Solutions Ltd

Tekelek Europe Ltd

Zimmer Orthopedics Manufacturing Ltd

project description

Insurance & Reinsurance

Printed Circuit Boards

Active Electronic Components

Synthetic Diamonds

Facilities Management

Aircraft Electrical Equipment Repair

Telecom Services

Electrical Switchgear

Closures, Plastic

Aircraft Engine Turbine Blade Repair

Machine Cutting Tools

Electronic Connectors

Payment Processing Services

Anti Virus and Security Software

Pharmaceutical Distribution

Financial Services

Fasteners Nec

Diagnostic Test Kits/Reagents

Aircraft Maintenance & Repair

Electronic Support

Assembly Watches & Clocks

Waste Treatment Equipment

Electronic Control Systems

Medical Instruments & Supplies

payments 2009

¤

10,400

10,400

3,875

143,000

105,850

118,809

878,538

18,200

13,000

183,155

17,810

145,589

49,400

55,000

13,000

54,932

39,000

140,558

66,410

53,140

20,800

6,000

152,464

1,409,711

total payments

¤

518,295

151,289

240,779

5,450,682

105,850

1,788,393

2,844,023

2,821,794

184,098

6,323,799

17,810

8,762,337

519,174

165,000

178,066

54,932

6,210,752

552,470

44,451,905

53,140

62,367

16,121

1,167,019

1,409,711

ShANNoN CAStle bANquetS AND heRItAge ltD

■ Attendances at Day Visitor Attractions ■ Attendances at Banquets and Evening Entertainment Products

employmeNt IN the ShANNoN FRee ZoNe IN 2009

■ 2009 ■ 2008 ■ Gains ■ Losses ■ Net change

ShANNoN FRee ZoNe: INDuStRy gRANt pAymeNtS 2009

stAtisticAl inFormAtion >

100000

200000

300000

400000

500000

2005 2006 2007 2008 2009

100000

200000

300000

400000

500000

-2000 -1000 0 1000 2000 3000 4000 5000 6000 7000 8000 2004 2005 2006 2007 2008

totAl

services

mAnuFActuring

To allow meaningful comparison for 2009, the base figure for jobs in companies assisted by Shannon Development in 2008 has been adjusted to take account of relevant changes which occurred during 2008, such as companies changing from being Irish owned to foreign owned or vice versa and relocation or reclassification of companies.

*Funded under De Minimis Aid in 2009 **Part funded under De Minimis Aid in 200922 :: shannon development annual Report 2009

Cost per job:the cost of jobs created and sustained in the shannon Free Zone in 2009 was 37,736 per job.

In accordance with the methodology outlined

by the department of enterprise, trade and

employment, as highlighted in paragraph 4.18

of the Review of Industrial performance (1990),

the cost per job is calculated by relating new jobs

created and sustained during 2003–2009 to all

grants paid (at constant 2009 prices) during the

period 2002–2008. the derived cost is therefore

a moving average and may fluctuate upwards or

downwards. this year’s calculation has, in line

with other agencies, netted grants repaid by

companies against payments to companies for

the same period (2002–2008).


RegISteReD oFFICe: Shannon Development

Town Centre Shannon Co Clare

T: + 353 (61) 361 555

Direct Dial Facility: + 353 (0) 61-710 followed by extension number.

F: + 353 (61) 361 903

E: [email protected]

www.ShannonDevelopment.ie

RegIoNAl DevelopmeNt oFFICeS:

Shannon Development

The Granary Michael St Limerick

T: + 353 (61) 410777 F: + 353 (61) 315634

Shannon Development

Connolly Street Nenagh Co Tipperary

T: + 353 (67) 32100 F: + 353 (67) 33418

Shannon Development

Birr Technology Centre Mill Island Birr Co Offaly

T: + 353 (57) 9124000 F: + 353 (57) 9120660

Shannon Development

Information Age Park Ennis Gort Road Ennis Co Clare.

T: + 353 (65) 6895000 F: + 353 (65) 6895010

Shannon Development

Kerry Technology Park Tralee Co Kerry

T: + 353 (66) 7190000 F: + 353 (66) 7190070

SubSIDIARy CompANIeS: kilrush Creek marina ltd

Merchant’s Quay Kilrush Co Clare

T: + 353 (65) 9052072 F: + 353 (65) 9051692

www.kilrushcreekmarina.ie

Shannon Castle banquets & heritage ltd

Bunratty Castle & Folk Park Bunratty Co Clare

T: + 353 (61) 361511(Admin) + 353 (61) 360788 (Reservations) F: + 353 (61) 472523

www.shannonheritage.com

NAtIoNAl DevelopmeNt pRogRAmme 2000–2006: pRoDuCt DevelopmeNt SChemeTourism Project Payments 2009

developer

North Tipperary County Council

project

Lough Derg International Waterpark

payments: 2009 ¤

71,985

The development of tourism has been greatly assisted by the transfer of European Regional Development Funds. These funds make a significant contribution to the Irish Government’s Tourism Operational Programme by encouraging the development of new tourism products and creating substantial employment opportunities throughout the Shannon Region.

stAtisticAl inFormAtion/compAnY oFFices >


ShANNoN heRItAge touRISm SIteS bunratty Castle & Folk park

Bunratty Co Clare

T: + 353 (61) 361511(Admin)/ 360788 (Reservations) F: + 353 (61) 472523

Cliffs of moher gift Shop

Shannon Heritage Liscannor Co Clare

T: + 353 (65) 7081465 F: + 353 (65) 7081866

Craggaunowen Castle

Quin Co Clare

T: + 353 (61) 367178 F: + 353 (61) 367097

Dunguaire Castle

Kinvara Co Galway

T: + 353 (91) 637108

king john’s Castle

Limerick City

T: + 353 (61) 411201/411202 F: + 353 (61) 400506

killaloe heritage Centre

Killaloe Co Clare

T: + 353 (61) 376866

knappogue Castle

Quin Co Clare

T: + 353 (61) 368103/368101 F: + 353 (61) 368689

lough gur heritage Centre

Co Limerick

T: + 353 (61) 385186

shAnnon Development knoWleDge netWork locAtions

birr technology Centre

Birr Co Offaly

T: +353 (57) 9124000 F: + 353 (57) 9120660

Information Age park ennis

Ennis Co Clare

T: + 353 (65) 6895000 F: + 353 (65) 6895010

kerry technology park

Tralee Co Kerry

T: + 353 (66) 7190000 F: + 353 (66) 7190070

National technology park

Limerick

T: + 353 (61) 338177 F: + 353 (61) 338065

tipperary technology park

Thurles Co Tipperary

T: + 353 (504) 29300 F: + 353 (504) 29305

business centres

listowel business Development Centre

Listowel Business Park Listowel Co. Kerry

T: + 353 (66) 7190000

F: + 353 (66) 7190070

tait business Centre Dominic St Limerick

T: + 353 (61) 419477 F: + 353 (61) 414315

compAnY oFFices >


shAnnon Development innovAtionWorks Innovationworks

Birr Technology Centre Birr Co Offaly

T: + 353 (57) 9124000 F: + 353 (57) 9120660

Innovationworks

Information Age Park Ennis Ennis Co Clare

T: + 353 (65) 6895000 F: + 353 (65) 6895010

Innovationworks

Kerry Technology Park Tralee Co Kerry

T: + 353 (66) 7190000 F: + 353 (66) 7190070

Innovationworks

National Technology Park Limerick

T: + 353 (61) 338177 F: + 353 (61) 338065

Innovationworks

Tipperary Technology Park Thurles Co Tipperary

T: + 353 (504) 29300 F: + 353 (504) 29305

shAnnon region tourist inFormAtion oFFices – 2009

YeAr rounD oFFices

Adare – tourist Information office

Heritage Centre Main Street Adare Co. Limerick

T: + 353 (61) 396255 F: + 353 (61) 396610 E: [email protected]

ennis – tourist Information office

Arthur’s Row (off O’Connell Square) Ennis Co. Clare

T:+ 353 (65) 6828366 F:+ 353 (65) 6828350 E: [email protected]

limerick – tourist Information office

Arthur’s Quay Limerick


Shannon Airport – tourist Information office

Arrivals Hall Shannon Airport Co. Clare


seAsonAl oFFices (opening mAY to sept)

birr – tourist Information office

Birr Co. Offaly

T: + 353 (57) 9120110

Cliffs of moher – tourist Information office

Shannon Heritage Liscannor Co. Clare

T: + 353 (65) 7081171 F: + 353 (65) 7081866

kilkee – tourist Information office

Kilkee Co. Clare

T: +353 (65) 9056112

killaloe – tourist Information office

Shannon Heritage The Bridge, Killaloe Co. Clare

T: + 353 (61) 376866

kilrush – tourist Information office

Francis Street Kilrush Co. Clare

T: +353 (65) 9051577

Nenagh – tourist Information office

Nenagh Co. Tipperary

T: + 353 (67) 31610

compAnY oFFices >


local knowledge.We have a network of facilities and people on the ground in the shannon Region serving tourism, indigenous industry and inward investors; as well as providing visitor information and direct tourism offers.

We work closely with other agencies in marketing the Region’s unique offer worldwide, to traditional Us and european markets and increasingly to new markets including China and India.


DIReCtoRS’ RepoRt AND CoNSolIDAteD FINANCIAl StAtemeNtS:

yeAR eNDeD 31 DeCembeR 2009

Report of the Directors 28

Statement on Internal Financial Control 30

Report of the Comptroller and Auditor General 31

Accounting Policies 32

Consolidated Income and Expenditure Account 33

Statement of Movement in Retained Surpluses 34

Statement of Total Recognised Gains and Losses 34

Consolidated Balance Sheet 35

Company Balance Sheet 36

Consolidated Cash Flow Statement 37

Notes to the Consolidated Financial Statements 38 - 56

RepoRt oF the DIReCtoRSThe Directors submit their report together with the audited financial statements for the year ended 31 December 2009.

pRINCIpAl ACtIvItIeSShannon Development is mandated to:

• Focus on the broader regional economic development of the Shannon Region.

• Play a key role in the development of the potential of Shannon International Airport.

• Help build a viable counter-pole to the more developed eastern region in accordance with the objectives of the National Spatial Strategy.

• Give priority to addressing the needs of the less developed parts of the Shannon Region.

• Participate in initiatives with other key partners to identify and articulate the needs of the broader Atlantic Region.

• Develop the property portfolio of the company to enable it to deliver its new mandate.

• Continue to exercise a strong regional tourism remit in the light of the continuation of an overall regional development role.

• Ensure that the new tourism arrangements in the Mid-West mirror the new vision for regional tourism structures set out in the PriceWaterhouseCoopers and Travers Reports commissioned by Fáilte Ireland.

Shannon Development is thus challenged to lead and drive the economic development of the Shannon Region across all areas of economic activity working in partnership with the government, other public bodies and the private sector. Critically, Shannon Development’s property portfolio, together with the revenue and capital monies that it realises, positions the Company to turn its high level vision and strategy into action and tangible results.

Results, Reserves and Dividends

¤000

Deficit for year (17,355)

Transfer of Assets to the National Pension Reserve Fund

(52,711)

Actuarial gains on pension liability

8,688

Deferred Pension Funding 52,546

Investments Transfer to Enterprise Ireland

(2,200)

Decrease in Reserves (11,032)

Details of the results for the year are set out in the Income and Expenditure account on Page 33, the Balance Sheet on page 35, and in the related notes.

As in previous years, it is not proposed to pay a dividend.

highlights of the year

Shannon Development marked its 50th anniversary with a national Dynamic Regions Conference. A panel of leading national and international experts provided a vision for future directions in regional development, and the event was hugely successful.

In 2009, 260 new jobs were created at the Shannon Free Zone. However, reflecting the extremely difficult trading environment for industry, employment numbers at the Shannon Free Zone fell 11% year on year. It should be noted that almost 80% of these job losses were as a result of down sizing and not closures. Shannon Development approved ¤15.5 million of investment support to Shannon Free Zone companies in 2009. These supports leveraged ¤57 million in investments.

In response to the continued economic challenges facing the Shannon Region tourism industry in 2009, Shannon Development directly undertook a series of tourism boosting initiatives in domestic and overseas markets. As a result, the Company generated an estimated ¤47 million in tourism revenue for the Region, attracting almost 315,000 additional visitors and generating almost 600,000 additional bed nights for the Shannon Region.

On the property side, Shannon Development invested ¤9.6 million in 2009 to provide a range of leading edge business property solutions for indigenous and FDI companies. Among projects progressed in 2009 was a ¤4 million expansion for Tipperary Technology Park, Thurles, County Tipperary, which is almost complete.

shAnnon Free Airport Development compAnY limiteD >


During 2009 Shannon Development extended its E-Towns project to Tarbert, County Kerry, investing a further ¤3 million into this initiative which seeks to bring economic development using a live/work model into local communities. The primary aim of the E-Towns project is to help disperse economic activity and job creation to smaller population centres. Due to the impact of the economic downturn the carrying value of these developments has been impaired during the year (as outlined in Note 12 to the Financial Statements) but the initiative remains a key tool by which Shannon Development will deliver Economic Development throughout the Region.

During the year, Shannon LNG progressed its ¤500 million LNG facility on Shannon Development’s 600 acre land bank at Tarbert/Ballylongford, County Kerry. When complete, the project will provide a significant portion of Ireland’s projected gas needs, resulting in a downward pressure on price and increased security and diversity of Ireland’s energy supply.

In 2009, Shannon Development and North Tipperary County Council become the first state agency and local authority to use satellite navigation systems to map visitor attractions, activities and accommodation. In a unique partnership between the bodies, over 220 points of interest in the North Tipperary area were made available to in-car satellite navigation systems.

To increase its focus on the Greater Limerick Area, Shannon Development established a new dedicated Limerick Development Division in 2009. The Division will focus on business development and tourism promotion in the Greater Limerick Area.

Work on the ¤2 million Shannon Region International Trails Programme, initiated by Shannon Development, progressed in 2009. Designed to help grow visitor numbers and secure long term sustainable economic benefits for less developed areas of the Shannon Region, six new loop walks were opened in counties Clare, Limerick and North Tipperarary. Two cycling hubs at Doonlin in North Clare and Nenagh in County Tipperary were launched, and a further two cycling hubs at Kilmallock, County Limerick and Birr, County Offaly were nearing completion at year end. County Clare cycle routes received an additional boost when they were voted one of the world top ten in the Lonely Planet’s Best in Travel 2010 guide.

Reflecting the national and international downturn in the tourism industry, Shannon Heritage recorded a downturn in 2009, but despite this the Shannon Development tourism subsidiary attracted 440,000 visitors to its range of visitor attractions and evening entertainment, which employs 300 people in high season and contributes an estimated ¤20 million in spin-off benefits to the local economy.

Future Developments and Five year Strategic plan

The Company has operated a self-financing financial model since the 1990s, leveraging the property assets managed on behalf of the Exchequer to deliver economic development programmes and projects in the Shannon Region. The model is primarily based on using the revenue and capital receipts generated from the Company’s property portfolio to fund economic development projects and the day to day operations of the Company.

While the Company has experienced financial challenges, due to the impact of the economic downturn on the property sector, the Board has taken steps to address these by reducing costs, developing new income sources and monitoring capital expenditure programmes. During the year the Board approved the Company’s Five Year Strategic Plan which sets out how the Company will deliver its mandate over the period 2009-2013 and which incorporates a financial plan demonstrating the Company returning to profitability and delivering a capital development programme of ¤52 million by 2013. The Plan envisages the economy stabilising in 2010 and returning to growth in 2011. The return of liquidity to the financial markets will facilitate the realisation of a number of significant property sales and investment in the Shannon Region. The Board is confident that it has the resources to deliver the Strategic Plan which underpins how the Company will lead and drive the economic development of the Shannon Region during the period 2009-2013.

Directors’ Responsibilities

Company law requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Group and of the profit or loss of the Group for that period. In preparing those financial statements, the Directors are required to;

• Select suitable accounting policies and then apply them consistently;

• Make judgements and estimates that are reasonable and prudent;

• State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

Applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements. The Directors are responsible for

keeping proper books of account which disclose with reasonable accuracy at any time the financial position of the Group and enable them to ensure that the financial statements comply with the Companies Acts, 1963 to 2009. They are also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

books of Account

The measures taken by the Directors to secure compliance with the Company’s obligation to keep proper books of account are the use of appropriate systems and procedures and employment of competent persons. The books of the account are kept at Shannon Development, Shannon Town Centre, Shannon, Co. Clare.

Subsidiaries and Related Companies

The information required by Section 158 (4) of the Companies Act, 1963 to 2009 is shown in Note 30 to the financial statements.

health and Safety

The well-being of the Group’s employees is safeguarded by adherence to the requirements of the Safety, Health and Welfare at Work Act, 2005.

board of Directors

The names, attendance and emoluments of persons, who were Directors at any time during the year ended 31 December 2009, are set out below:

Attendance emoluments

member

(11 meetings held in 2009)

¤000

J Brassil (Chairman) 10 22

T Barrett 9 13

P Collins 10 13

C Dunne (resigned 30 January 2009)

0 0

R Downer 8 13

J Ferriter 11 13

N Foran 8 13

B Keane (appointed 30 January 2009)

9 0

W Loughnane 8 13

P O’ Brien 10 13

J Reynolds 8 13

D Sadlier 9 13

P Shanahan 9 13


board of Directors

In accordance with Article 75 of the Articles of Association, Mr. John Brassil and Mr. Bob Keane retired by rotation from office on 12 May 2009 and were reappointed.

Under Article 83 of the Articles of Association, Ms. Clare Dunne resigned from office on 30 January 2009. In accordance with Article 77 of the Articles of Association, Mr. Bob Keane was appointed a Director on 30 January 2009.

Ms. Therese Ross was Company Secretary to the Board of Directors during 2009.

The Company has reflected the following costs in the 2009 Financial Statements in respect of Board related activities:

expense Category ¤000

Domestic Travel 11

Accommodation and Meals Domestic

7

Bus Fares and Taxis 1

Miscellaneous 1

Total Costs 20

Auditors

The Comptroller and Auditor General continues in office in accordance with the Company's Articles of Association, and Section 5((1)(a)(i)) of the Comptroller and Auditor General (Amendment) Act,1993.

Signed: John Brassil

Signed: Tom Barrett

On behalf of the Board of Directors of Shannon Development, I acknowledge our responsibility for ensuring that an effective system of internal financial control is maintained and operated by the Group. The Chairmen of the trading subsidiaries have reported to the main Board in relation to the financial controls in their respective subsidiaries and in accordance with the requirement of the Code of Practice for the Governance of State Bodies.

The system is designed to manage rather than eliminate risk of failure and therefore can only provide reasonable and not absolute assurance that assets are safeguarded, transactions authorised and properly recorded, and that material errors or irregularities are either prevented or would be detected in a timely period.

The Board has taken steps to ensure an appropriate control environment is in place by:

• Clearly defining management responsibilities and powers;

• Establishing formal procedures for monitoring the activities and safeguarding the assets of the organisation;

• Developing a culture of accountability across all levels of the organisation.

The Board has established processes to identify and evaluate business risks by:

• Identifying the nature, extent and financial implication of risks facing the Group including the extent and categories which it regards as acceptable;

• Assessing the likelihood of identified risks occurring;

• Working closely with Government and various Agencies to ensure that there is a clear understanding of Shannon Development’s goals and support for the strategies to achieve those goals.

The system of internal financial control is based on a framework of regular management information, administration procedures including segregation of duties, and a system of delegation and accountability. In particular it includes:

• A comprehensive budgeting system with an annual budget which is reviewed and agreed by the Board of Directors;

• Regular reviews by the Board of Directors of periodic and annual financial reports which indicate financial performance against forecasts;

• Setting targets to measure financial and other performance;

• Clearly defined capital investment control guidelines;

• Formal project management disciplines.

Shannon Development has an outsourced Internal Audit function for the Group. The function operates in accordance with the Framework Codes of Best Practice set out in the Code of Practice on the Governance of State Bodies and reports directly to the Audit Committee of Shannon Development. The work of internal audit is informed by analysis of the risk to which the Body is exposed and annual internal audit plans are based on this analysis. The analysis of risk and the internal audit plans are endorsed by the Audit Committee and the Board. At least annually, the Internal Auditor provides the Audit Committee with a report of internal audit activity. The report reflects the Internal Auditor’s opinion on the adequacy and effectiveness of the system of internal financial control within the scope of the areas that have been audited.

The Board’s monitoring and review of the effectiveness of the system of internal financial control is informed by the work of the Internal Auditor, the Audit Committee which oversees the work of the Internal Auditor, the management within Shannon Development who have responsibility for the development and maintenance of the financial control framework and comments made by the Comptroller and Auditor General in the management letter.

The Board confirms that for the year ended 31 December 2009, it conducted a review of the effectiveness of the system of internal financial control.

Signed on behalf of the Board

Chairman: John Brassil

stAtement on internAl FinAnciAl control >


I have audited the group and parent company financial statements of Shannon Free Airport Development Company Limited for the year ended 31 December 2009 under the Comptroller and Auditor General (Amendment) Act 1993.

The financial statements, which have been prepared under the accounting policies set out therein, comprise the Accounting Policies, the Consolidated Income and Expenditure Account, the Consolidated Statement of Movement in Retained Surpluses, the Consolidated Statement of Total Recognised Gains and Losses, the Consolidated and Company Balance Sheets, the Consolidated Cash Flow Statement and the related notes.

Respective Responsibilities of the Directors and the Comptroller and Auditor general

The Directors’ responsibilities for preparing the financial statements in accordance with applicable law and Generally Accepted Accounting Practice in Ireland are set out in the Report of the Directors. The Directors are also responsible for ensuring the regularity of transactions.

My responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland).

I report my opinion as to whether the financial statements give a true and fair view, in accordance with Generally Accepted Accounting Practice in Ireland and are properly prepared in accordance with the Companies Acts 1963 to 2009, and the European Communities (Companies: Group Accounts) Regulations 1992. I also report whether in my opinion proper books of account have been kept by the Company; whether at the balance sheet date, there exists a financial situation requiring the convening of an extraordinary general meeting of the Company; and whether the information given in the Report of the Directors is consistent with the financial statements. In addition, I state whether I have obtained all the information and explanations necessary for the purposes of my audit, and whether the Company’s balance sheet is in agreement with the books of account.

I report any material instance where moneys have not been applied for the purposes intended or where the transactions do not conform to the authorities governing them.

I review whether the Statement on Internal Financial Control reflects the Group’s compliance with the Code of Practice for the Governance of State Bodies and report any material instance where it does not do so, or if the statement is misleading or inconsistent with other information of which I am aware from my audit of the financial statements. I am not required to consider whether the Statement on Internal Financial Control covers all financial risks and controls, or to form an opinion on the effectiveness of the risk and control procedures.

I read other information contained in the Annual Report, and consider whether it is consistent with the audited financial statements. I consider the implications for my report if I become aware of any apparent misstatements or material inconsistencies with the financial statements.

basis of audit opinion

In the exercise of my function as Comptroller and Auditor General, I conducted my audit of the financial statements in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board and by reference to the special considerations which attach to State bodies in relation to their management and operation. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures and regularity of the financial transactions included in the financial statements. It also includes an assessment of the significant estimates and judgments made in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Group’s circumstances, consistently applied and adequately disclosed.

I planned and performed my audit so as to obtain all the information and explanations that I considered necessary in order to provide me with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming my opinion I also evaluated the overall adequacy of the presentation of information in the financial statements.

opinion

In my opinion, the financial statements:

• give a true and fair view, in accordance with Generally Accepted Accounting Practice in Ireland, of the state of the Group’s and Company’s affairs at 31 December 2009 and of the Group’s deficit for the year then ended; and

• have been properly prepared in accordance with the Companies Acts 1963 to 2009, and the European Communities (Companies: Group Accounts) Regulations 1992.

I have obtained all the information and explanations that I consider necessary for the purpose of my audit. In my opinion proper books of account have been kept by the Company. The Company’s balance sheet is in agreement with the books of account.

In my opinion, the information given in the Report of the Directors is consistent with the financial statements. I draw attention to the information contained in that report in relation to the future developments and the five year strategic plan of the Company.

The net assets of the Company, as stated in the balance sheet are more than half of the amount of its called-up share capital and, in my opinion, on that basis there did not exist, at 31 December 2009, a financial situation which, under Section 40 (1) of the Companies (Amendment) Act 1983, would require the convening of an extraordinary general meeting of the Company.

John Buckley

Comptroller and Auditor General

29 March 2010

report oF the comptroller AnD AuDitor generAl For presentAtion to the houses oF the oireAchtAs >


basis of Accounting

The financial statements have been prepared in accordance with the historical cost convention in the form approved by the Minister for Enterprise, Trade and Employment with the concurrence of the Minister for Finance under the Shannon Free Airport Development Company Limited Act, 1959 as amended, and in accordance with the Companies Acts 1963 to 2009.

The format of these financial statements complies with the required format set out in the Companies (Amendment) Act 1986, subject to certain departures from the standard format of the Income and Expenditure account which are necessary to give a true and fair presentation of the results of the Group.

The financial statements are prepared on an accruals basis, except as stated below and in accordance with Generally Accepted Accounting Practice. Financial Reporting Standards recommended by the recognised accountancy bodies are adopted as they become applicable.

Income Recognition

Income from Oireachtas grants, grant refunds, the European Social Fund, the European Regional Development Fund and Investments is accounted for on a cash receipts basis.

Capital Reserve

State funding received by the Group for the purpose of acquisition of fixed assets and equity investments is treated as a capital contribution and included in shareholders’ funds.

Deferred Income

EU and other grants received in respect of the purchase of fixed assets are treated as deferred credits, and are amortised to the income and expenditure account annually over the useful economic life of the asset to which it relates.

leases

Expenditure incurred under operating leases is charged to the Income and Expenditure Account. Assets held for rent under operating leases are included in Tangible Assets at cost less accumulated depreciation. The rental income earned from the leasing of these assets is accounted for as income in the Income and Expenditure Account on the accruals basis.

Stocks

Stocks are stated at the lower of cost and net realisable value. Cost is based on purchase price on a first in, first out basis. Net realisable value is based on estimated selling price less all further costs to completion and less all costs incurred in marketing, selling and distribution. Provision is made for obsolete, slow moving or defective items, where appropriate.

tangible Assets and Depreciation

The major portion of the Groups assets have been developed or constructed for the purposes of assisting in the promotion of industry and tourism. They are not considered to be investment properties but normal fixed assets and are stated at cost less accumulated depreciation.

The cost of industrial land and buildings and construction work in progress includes an apportionment of staff costs directly associated with the acquisition or development of the assets.

Construction Work in Progress is stated at cost and relates to capital expenditure on construction projects that have not been completed at the year end.

The carrying value of tangible fixed assets is reviewed for impairment if events or changes in circumstances indicate that the carrying value may not be recoverable.

Details of depreciation rates are set out in Note 12 to the financial statements.

Financial Assets

Financial assets comprise investments and loans and are stated at cost less provision for any diminution in value. An initial provision is applied to all investments. Further provisions and write offs, if deemed necessary, are recommended by in-house investment specialists and approved by Board based on audited or management accounts and any other relevant information available. Provisions for diminution in value are not reversed until investments are disposed of.

Currencies

The unit of currency in which the financial statements are denominated is the Euro.

Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the balance sheet date and revenues, costs and non monetary assets at the exchange rates ruling at the dates of the transactions. The resulting gains or losses are dealt with through the Income and Expenditure Account.

Retirement benefits

Defined benefit pension scheme assets are measured at fair value. Defined benefit pension scheme liabilities are measured on an actuarial basis using the projected unit method. The excess of scheme liabilities less deferred pension funding is presented on the balance sheet as a net liability. The deferred pension funding represents the corresponding asset to be recovered in future periods from the Exchequer. The defined benefit pension charge to operating profit comprises the current service cost and past service cost. The excess of the expected return on scheme assets over the interest cost on the scheme liabilities is presented in the income and expenditure account with net interest income. Actuarial gains and losses arising from changes in actuarial assumptions and from experience surpluses and deficits are recognised in the statement of total recognised gains and losses for the year in which they occur.

The defined contribution pension charge to operating profit comprises the contribution payable to the scheme for the year.

bad and Doubtful Debts

Provision is made in respect of doubtful debts in relation to amounts due from industrial, commercial tenants and diminution in value of loans, investments and deferred debtors.

taxation

Taxation is calculated on taxable profits, after adjusting for non-taxable items at the current corporation tax rates. Details of taxable profits are set out in Note 10 to the financial statements.

liquid Resources

Liquid resources are current asset investments, which are held as readily disposable stores of value. Liquid resources include deposits of less than one year.

Accounting policies >


Notes 2009 ¤000

2008 ¤000

(Restated)

Income

Grants 2 4,178 3,814

Rental 14,724 17,016

Tourism Activities 10,834 12,861

Eu Income 39 66

Total Group Income 29,775 33,757

expenditure

Grants 2 (3,829) (2,994)

Direct Property Expenses 4 (6,527) (6,719)

Depreciation / Impairment - Property Assets (14,267) (8,407)

Direct Cost of Sales - Tourism Activities (3,408) (4,210)

gross Surplus 1,744 11,427

Other Operating Expenses 5 (20,996) (26,709)

Depreciation - Other Assets (373) (332)

Other Operating Income 6 978 1,165

Less: Share of Operating Income of joint ventures and associates

(1) (2)

Group Operating Deficit 7 (18,648) (14,451)

Share of Operating Loss of joint ventures and associates (11) (9)

(18,659) (14,460)

Profit on Sale of Assets 2,474 8,586

Profit on Sale of Investments 10 35

Deficit on ordinary activities before interest (16,175) (5,839)

Net Interest Income 9 (1,103) 662

Deficit on ordinary activities before tax (17,278) (5,177)

Taxation charge 10 (77) (15)

Deficit for the financial year (17,355) (5,192)

Income and operating profits arose solely from continuing operations.The accounting policies and notes 1 to 37 form part of these Financial Statements.


Signed: Tom Barrett

consoliDAteD income AnD eXpenDiture AccountFor the YeAr enDeD 31 December 2009 >


stAtement oF movement in retAineD surpluses >

2009 ¤000

2008 ¤000

(Restated)

Balance at 1 January (112,430) (95,654)

Deficit for the year (17,355) (5,192)

Actuarial gains / (losses) on pension liability 8,688 (11,584)

Transfer of Assets to the National Pension Reserve Fund (52,711) 0

Deferred Pension Funding 52,546 0

Balance at 31 December (121,262) (112,430)

stAtement oF totAl recogniseD gAins AnD losses >

2009 ¤000

2008 ¤000

(Restated)

Deficit for the year (17,355) (5,192)




Investments Transfer to Enterprise Ireland (2,200) 0

Total Recognised Losses for the Financial Year (11,032) (16,776)

Prior Year Adjustment (note 13) 486

Total recognised losses since last Annual Report (10,546) The accounting policies and notes 1 to 37 form part of these Financial Statements.


Signed: Tom Barrett


consoliDAteD bAlAnce sheetAt 31 December 2009 >

Notes 2009 ¤000

2008 ¤000

(Restated)

Fixed Assets

Tangible Assets 12 123,928 126,221

Financial Assets 14 5,860 8,104

129,788 134,325

Current Assets

Stocks 18 709 778

Debtors 19 3,757 4,185

Cash and Liquid Resources 13,664 29,434

18,130 34,397

Current liabilities

Creditors (Amounts falling due within one year) 20 (7,400) (9,608)

Net Current Assets 10,730 24,789

total Assets less Current liabilities 140,518 159,114

Creditors (Amounts falling due after more than one year)

Deferred Income - Capital grants 21 (3,584) (3,781)

Net pension liability 22 (a) (30,679) (38,046)

Net Assets 106,255 117,287

Capital and Reserves

Called up Share Capital 23 183,522 183,522

Capital Reserve 24 43,995 46,195

Reserves 25 (121,262) (112,430)

equity shareholders’ funds 26 106,255 117,287

The accounting policies and notes 1 to 37 form part of these Financial Statements.


Signed: Tom Barrett


compAnY bAlAnce sheetAt 31 December 2009 >

Notes 2009 ¤000

2008 ¤000

(Restated)

Fixed Assets

Tangible Assets 12 123,349 125,609

Financial Assets 14 6,076 8,320

129,425 133,929

Current Assets

Stocks 18 132 133

Debtors 19 4,115 4,600

Cash and Liquid Resources 12,931 28,470

17,178 33,203

Current liabilities

Creditors (Amounts falling due within one year) 20 (6,471) (8,669)

Net Current Assets 10,707 24,534

total Assets less Current liabilities 140,132 158,463

Creditors (Amounts falling due after more than one year)

Deferred Income - Capital grants 21 (3,584) (3,781)

Net pension liability 22 (a) (30,679) (38,046)

Net Assets 105,869 116,636

Capital and Reserves

Called up Share Capital 23 183,522 183,522

Capital Reserve 24 43,995 46,195

Reserves 25 (121,648) (113,081)

equity shareholders’ funds 26 105,869 116,636



Signed: Tom Barrett


consoliDAteD cAsh FloW stAtement For the YeAr enDeD 31 December 2009 >

Notes 2009 ¤000

2008 ¤000

(Restated)

Net cash outflow from operating activities 27(a) (7,030) (9,341)

Returns on investments and servicing of finance 27(b)(i) 944 1,812

Taxation Paid (77) (15)

Capital expenditure and financial investment 27(b)(ii) (9,607) 336

Net cash outflow before the use of liquid resources (15,770) (7,208)

management of Liquid Resources 27(b)(iii) 16,547 3,860

Financing 27(b)(iv) 0 0

Increase / (Decrease) in Cash 27(c) 777 (3,348)



Signed: Tom Barrett


notes to the consoliDAteD FinAnciAl stAtements >

1. Segmental Information

There are no significant segments within the Group’s operations which would warrant disclosure of segmental information.

2. grant Income and expenditure 2009 ¤000

2008 ¤000

(Restated)

a) grant Income by Class of Activity– oireachtas grants:

Grant-in-Aid - Running Expenses 832 865

Grant-in-Aid - Grants to Industries 1,504 1,675

other grants:

Specific measures 413 112

Grant Repayments – Grants to Industry 1,357 307

Tourism Operational Programme 72 855

4,178 3,814

b) grants expenditure

Grants to Industries (Note 3) 3,344 2,027

Specific measures 413 112

Tourism Operational Programme 72 855

3,829 2,994

3. grants to Industries 2009 ¤000

2008 ¤000

(Restated)

Shannon Free Zone

Buildings 1,340 0

Training Workers 259 39

Research and Development 984 1,257

Employment 664 679

Environmental management Systems 6 0

marketing Development Support 37 5

Strategy Consultancy 6 2

3,296 1,982

Administration Expenses 48 45

3,344 2,027

The total Training Workers grants expenditure funded by the National Training Fund for 2009 was ¤255,000 (2008: ¤39,000).


4. Direct property expenses 2009 ¤000

2008 ¤000

(Restated)

Staff Costs 1,490 999

Repairs, maintenance and Services 2,513 3,387

Rent, Rates and Insurance 1,049 969

Light, heat and Power 623 676

Increase in Provision for Bad and Doubtful Debts 678 46

Other Expenses 370 632

Write Off of Fixed Assets (196) 10

6,527 6,719

5. other operating expenses 2009 ¤000

2008 ¤000

(Restated)

Industrial and Tourism Promotion (i) 13,305 17,364

Administrative Expenses (ii) 7,683 8,644

Impairment of Investments 0 204

Other Operating Expenses 205 161

Amortisation of Capital Grants (197) (196)

Transfer to Enterprise Ireland Costs 0 532

Settlement Gain 0 (2,550)

Forfás Pension Payment 0 2,550

20,996 26,709

(i) Industrial and tourism promotion

Staff Costs 8,992 10,151

Other 4,313 7,213

13,305 17,364

(ii) Administrative expenses

Staff Costs 5,317 5,775

Other 2,366 2,869

7,683 8,644


6. other operating Income 2009 ¤000

2008 ¤000

(Restated)

miscellaneous Property Income 808 707

miscellaneous Income 169 456

Share of Associates’ Operating Income 1 2

978 1,165

7. the Deficit on ordinary Activities before taxation has been arrived at after charging:-

2009 ¤000

2008 ¤000

(Restated)

Depreciation / Impairment 14,640 8,739

Director’s Remuneration (i) 165 174

Auditor’s Remuneration 90 91

Exceptional Item (34) 70

(i) Director’s remuneration comprises emoluments for services as a Director.

8. employment 2009 ¤000

2008 ¤000

(Restated)

Staff Costs:

Wages and Salaries 13,420 13,929

Voluntary Early Retirement / Voluntary Severance Costs (34) 60

Social Welfare Costs 1,234 1,360

Pension Costs 1,222 1,614

15,842 16,963

The annual basic salary of the Chief Executive Officer of the Company for 2009 amounts to ¤158,918. Other remuneration costs for 2009 amount to ¤14,938 and ¤15,900 in relation to superannuation contributions and benefit in kind respectively. No performance related bonus was paid in 2009. The superannuation entitlements of the CEO do not extend beyond the standard entitlements of the public sector defined benefit superannuation scheme.

Average Number of persons employed by the group 2009 ¤000

2008 ¤000

(Restated)

Shannon Development 126 138

Shannon Development Subsidiaries 167 197

293 335


9. Net Interest Income 2009 ¤000

2008 ¤000

(Restated)

Dividend and Fee Income 0 2

Interest Receivable 944 1,811

Net Pension Finance Charge (Note 22) (2,047) (1,151)

(1,103) 662

10. taxation 2009 ¤000

2008 ¤000

(Restated)

Taxation 1 1

Deposit Interest Retention Tax 76 14

Taxation charge 77 15

Arising from legislative amendments introduced by the Finance Act 1994 and in accordance with Section 227 Taxes Consolidation Act, 1997 and Schedule 4, the Company is liable for Corporation Tax only in respect of profits arising from its trading activities. Income from other sources is exempt from Corporation Tax. The Company is also exempt from Capital Gains Tax in accordance with Section 610 Taxes Consolidation Act, 1997 and Schedule 15.

The standard rate of taxation applicable to the Company’s trading income is 12.5%.

11. Retained Deficit for the Financial year

The amount of the deficit attributable to Group shareholders dealt with in the financial statements of the holding company was ¤17,090,000 (2008 Restated: Deficit ¤4,968,000).


12. tangible Assets Industrial land & buildings ¤000

tourist land & buildings ¤000

Construction work in progress ¤000

Fixtures, Fittings & equipment¤000

total ¤000

a) group Cost

As at 1 January 2009 201,436 25,960 8,918 5,439 241,753

Additions 4,980 0 7,583 107 12,670

Disposals (1,373) 0 0 (39) (1,412)

Transfers 8,752 1,339 (10,227) 136 0

Write Offs (547) 0 (52) 0 (599)

As at 31 December 2009 213,248 27,299 6,222 5,643 252,412

Provision for Depreciation

As at 1 January 2009 100,419 10,643 0 4,469 115,531

Charged 9,215 1,077 0 346 10,638

Impairment 3,651 351 0 0 4,002

Disposals (906) 0 0 (39) (945)

Write Offs (676) (66) 0 0 (742)

As at 31 December 2009 111,703 12,005 0 4,776 128,484

Net book value 2009 101,545 15,294 6,222 867 123,928

Net Book Value 2008 100,543 15,802 8,917 959 126,221

b) Company

As at 1 January 2009 200,800 25,960 8,918 4,878 240,556

Additions 4,980 0 7,583 76 12,639

Disposals (1,373) 0 0 (39) (1,412)

Transfers 8,752 1,339 (10,227) 136 0

Write Offs (547) 0 (52) 0 (599)

As at 31 December 2009 212,612 27,299 6,222 5,051 251,184

Provision for Depreciation

As at 1 January 2009 100,257 10,643 0 4,046 114,946

Charged 9,188 1,077 0 309 10,574

Impairment 3,651 351 0 0 4,002

Disposals (906) 0 0 (39) (945)

Write Offs (676) (66) 0 0 (742)

As at 31 December 2009 111,514 12,005 0 4,316 127,835

Net book value 2009 101,098 15,294 6,222 735 123,349

Net Book Value 2008 100,543 15,317 8,917 832 125,609


12. tangible Assets (Continued)

Included in Industrial Land and Buildings additions of ¤4,980,000 is an amount of ¤3,107,000 in respect of a site which Shannon Development repurchased during the year. In 2008, Shannon Development completed the sale of a site for ¤3,108,000 and recorded the associated profit of ¤2,775,339 in the 2008 Financial Statements. The sale agreement included an option for Shannon Development to re-purchase the site under certain conditions and conversely for the purchaser to call on Shannon Development to repurchase the site. No provision was made for the profit on sale as it was not deemed probable that the repurchase option would be exercised.

In 2009 the purchaser exercised their option and Shannon Development repurchased the site for ¤3,107,000, being the original sale price less ¤1,000 towards cost. The repurchase of the site has been recorded at cost in the 2009 Financial Statements and impaired to its current market value of ¤2,331,000.

The carrying values of tangible fixed assets were reviewed for impairment and a charge of ¤4,002,000 has been provided for in 2009. The impairment charge comprises ¤1,484,000 for E-towns Miltown Malbay, ¤1,014,000 for E-towns Tarbert, ¤351,000 for Kilrush Creek Marina, ¤776,000 for the repurchased site mentioned above and ¤377,000 for other industrial and tourism assets.

During 2009, a review of the estimated useful economic lives of infrastructure assets was carried out. This resulted in the re-alignment of the remaining useful lives of certain classes of assets and an increase in the depreciation charge for 2009 of ¤1,500,000.

Tangible assets (excluding land) are depreciated on a straight-line basis at the following rates:

Industrial and Tourist Buildings

Buildings 3% - 10%

Infrastructure 3% - 10%

Fixtures, Fittings and Equipment

motor Vehicles 20%

Office Furniture and Fittings 15%

IT Equipment 33¹/³%

As at 31 December 2009 the gross amount of assets held for use in operating leases and related depreciation charges was ¤176,018,000 and ¤103,716,000 respectively.

The aggregate rental receivable for the year 2009 was ¤14,724,000.

13. prior year Adjustment

The prior year adjustment arises from a change in the Company’s capitalisation of expenses accounting policy. The Company has decided to capitalise all labour costs of its in-house Property Development and Asset Management departments, which are directly related to the construction and sale of property. These costs were previously expensed in the income and expenditure account.

The Company considers that this new accounting policy is more appropriate as the labour costs of the Property Development department are directly attributable to bringing the assets into working condition for their intended use. The labour costs of the Asset Management Department are directly attributable to the sale of property.

In order to present the prior years’ results on a comparable basis, the income and expenditure account, statement of total recognised gains and losses and balance sheet for 2008, have been restated. The effect on results of implementing this new accounting policy was to reduce the overall deficit for the year by ¤298,000 (2008: ¤486,000) and to increase the value of Group and Company reserves at 1 January 2009 by ¤486,000.


14. Financial Assets 2009 ¤000

2008 ¤000

(Restated)

group Interest in related companies:

Share of net assets 10 10

Other investments (Note 15) 243 2,443

Loans (Note 16) 2,573 2,592

Joint Ventures (Note 17) 3,034 3,059

Total 5,860 8,104

Company Interest in subsidiary companies:

Shares at cost 203 203

Interest in related companies:

Shares at cost 1,411 1,401

Less: Provision against diminution in value (1,388) (1,378)

23 23

Other investments (Note 15) 243 2,443

Loans (Note 16) 2,573 2,592

Joint Ventures (Note 17) 3,034 3,059

Total 6,076 8,320

Principal subsidiaries and related companies are listed on Note 30 to the financial statements.


15. other Investments group and Company

2009 ¤000

2008 ¤000

(Restated)

Cost

At 1 January 5,784 6,941

Additions – Equity Investments 0 0

5,784 6,941

Disposals


Redemptions (191) (171)

Write-off of bad debts previously provided for 0 (986)

At 31 December 537 5,784

Impairment Provision

As at 1st January (3,341) (4,143)

Release on Redemption 191 20

Investment Transfer to Enterprise Ireland 2,856 0

Charge for year 0 (204)

Write off bad debts previously provided for 0 986

At 31 December (294) (3,341)

Net Book Amount 243 2,443

The investments are listed in Note 31.

In 2006 the Department of Enterprise, Trade and Employment confirmed that indigenous industry investments held by Shannon Development (excluding Shannon Free Zone companies) should transfer to Enterprise Ireland. During 2009, the Industrial Development Act 2009 was enacted which facilitated the transfer of investments from Shannon Development to Enterprise Ireland. The gross cost of the investments which have transferred was ¤5,056,000 with a written down value of ¤2,200,000.


16. loans group and Company

2009 ¤000

2008 ¤000

(Restated)

Shannon Region Enterprise Fund (i) 1 9

Birr Technology Centre Loan (ii) 2,551 2,551

Other Loans (iii) 21 32

2,573 2,592

(i) Shannon Region Enterprise Fund This fund was established in 1988 to assist regional development projects in their initial years of trading. The Company

maintains an involvement with projects benefiting from the fund.

(ii) Birr Technology Centre Loan This is an interest bearing loan for the purpose of constructing the ‘Birr Technology Centre’ office premises. Shannon

Development has the option to purchase the centre at a fixed price in 2015.

(iii) Other Loans Other Loans are repayable in instalments over the period 2010-2011.

17. joint ventures The Company has entered into a joint venture arrangement with Westpark Shannon Limited. In return for the Company’s

investment of 20 acres of land in the development of Westpark, Shannon Free Zone, the Company acquired a percentage return on the income which will accrue from the Development. The cost of the joint venture investment has been determined at ¤2,286,000 which is the estimated market value of the land at the date of the investment.

In addition, the Company has a joint venture agreement in relation to the sale of property in which it has retained the right to a percentage of future rentals for a period of 39 years. The asset is amortised over the term of the agreement.

18. Stocks 2009 ¤000

2008 ¤000

(Restated)

group

Goods for resale 687 755

Consumable Stocks 22 23

709 778

Company

Goods for resale 110 110

Consumable Stocks 22 23

132 133

No significant differences exist between balance sheet stock values and replacement cost values.


19. Debtors 2009 ¤000

2008 ¤000

(Restated)

group Amounts falling due within one year

Trade Debtors (net of provisions) 1,607 1,258

Prepayments 250 299

Value Added Tax Recoverable 0 96

Other Debtors 1,900 2,532

3,757 4,185

Company Amounts falling due within one year

Trade Debtors (net of provisions) 1,462 1,125

Amounts owed by Group Companies 706 838

Prepayments 244 292

Value Added Tax Recoverable 0 96

Other Debtors 1,703 2,249

4,115 4,600

20. Creditors 2009 ¤000

2008 ¤000

(Restated)

groupAmounts falling due within one year

Trade Creditors 546 826

Income Tax deducted under PAYE 208 235

Pay Related Social Insurance 152 145

Value Added Tax Payable 64 0

Accruals and Other Liabilities 6,430 8,402

7,400 9,608

CompanyAmounts falling due within one year

Trade Creditors 181 277

Amounts owed to Group Companies 9 31

Income Tax deducted under PAYE 180 198

Pay Related Social Insurance 112 102

Value Added Tax Payable 60 0

Accruals and Other Liabilities 5,929 8,061

6,471 8,669


21. Deferred Income – Capital grants 2009 ¤000

2008 ¤000

(Restated)

group and Company Received

At beginning of year 8,221 8,221

Received during year 0 0

At end of year 8,221 8,221

Amortisation

At beginning of year 4,440 4,244

Amortisation to income and expenditure 197 196

At end of year 4,637 4,440

Net book value at end of year 3,584 3,781

22. Retirement benefits

The Company operates defined benefit schemes. The benefits are conferred by regulations (SFADCo. General Employees Superannuation Schemes). On 31 December 2009 in accordance with the provisions of the financial measures (Miscellaneous Provisions) Act 2009, the Minister for Finance ordered the transfer of the assets of the SFADCO Superannuation scheme to the National Pension Reserve Fund. As of the 1 January 2010 Shannon Development became responsible for the administration of the pension payments to pensioners on behalf of the Exchequer which will fund any deficit on contributions paid and benefits paid.

Post retirement pension increases will continue to be unfunded and paid by the Company, as they arise, from current revenue in accordance with directions from the Department of Finance. The Net Pension Liability at 31 December 2009 of ¤30,679,000 which is set out in the table below represents the group's liability in relation to post retirement pension increases.

Shannon Castle Banquets and Heritage Ltd. Operates a defined contribution pension scheme for certain employees. Payments made to the scheme are charged annually in the Financial Statements.

22(a) Retirement benefits – Net pension liability 2009 ¤000

2008 ¤000

(Restated)

Amounts Recognised in the Balance Sheet

Pension Liability before Deferred Pension Funding (i) 83,225 38,046

Deferred Pension Funding (52,546) 0

Net Pension Liability 30,679 38, 046

(i) PensionLiabilitybeforeDeferredPensionFundingin2008ofd38,046,000isnetoftheFairValueofPlanAssetsofd48,041,000givingaPresentValueofFundObligationsat31December2008ofd86,087,000.


22(b) Retirement benefits (Continued)

Retirement benefits – Financial Assumptions and Analysis 2009 ¤000

2008 ¤000

(Restated)

The financial assumptions used by the actuary were:

Discount Rate 6.00% 5.75%

Inflation Rate 2.00% 2.00%

Pensions Increases 2.75% 2.75%

Salary Increases 3.75% 3.75%

Change in Scheme obligation

Present Value of Scheme Obligation at the beginning of the year 86,087 89,090

Service Cost 1,717 1,653

Interest Cost 4,923 4,674

Actuarial (Gains) / Losses (5,117) (3,589)

Benefits Paid (4,385) (3,413)

Curtailment Costs 0 222

Settlement Gains 0 (2,550)

Present Value of Scheme Obligation at the end of the year 83,225 86,087

Change in plan Assets

Fair Value of Plan Assets at the beginning of the year 48,041 59,718

Expected Return on Plan Assets 2,876 3,523

Actuarial gains / (losses) 3,571 (15,173)

Transfer of assets to the National Pension Reserve Fund (52,711) 0

Employer Contributions 2,120 2,886

Plan member Contributions 488 500

Benefits paid from Plan (4,385) (3,413)

Fair Value of Plan Assets at the end of the year 0 48,041

Components of pension expense

Current Service Cost 1,717 1,653

Interest Cost 4,923 4,674

Expected Return on Plan Assets (2,876) (3,523)


Settlement Gains 0 (2,550)

Plan member Contributions (488) (500)

Total Pension Expense recognised in the Income and Expenditure Account 3,276 (24)



Statement of total Recognised gains and losses 2009 ¤000

2008 ¤000

(Restated)

Actuarial gains / (losses) recognised 8,688 (11,584)


Cumulative amount of actuarial (losses) / gains recognised (693) (9,381)

Cumulative Transfer of Assets to the National Pension Reserve Fund recognised (52,711) 0

Scheme Assets

The target asset allocations at the year end were as follows:

Equities N/A 45%

Bonds N/A 50%

Property N/A 5%

Actual Return on Scheme Assets 6,447 (11,650)


weighted average assumptions used to determine benefit obligations: 2009 ¤000

2008 ¤000

(Restated)


Rate of compensation increase 3.75% 3.75%

weighted average assumptions used to determine pension expense:


Expected long –term return on plan assets 6.10% 5.90%

life expectancy for mortality tables used to determine benefit obligations at:

members age 65 (current life expectancy) 21.7 years 20.7 years

members age 40 (life expectancy at age 65) 22.8 years 21.8 years



history of defined benefit obligations, assets and experience gains and losses:

2009 2008 2007 2006 2005

Defined Benefit Obligation 83,225 86,087 89,090 96,078 87,024

Fair Value of Plan Assets 0 (48,041) (59,718) (63,208) (56,777)

Deferred Pension Funding (52,546) 0 0 0 0

Net Pension Liability 30,679 38,046 29,372 32,870 30,247

Difference between expected and actual return on plan assets:

Amount ¤’000 (3,571) 15,173 7,268 (4,044) (7,421)

Transfer of Assets to National Pension Reserve Fund 52,711 0 0 0 0

Percentage of Plan Assets N/A 31.58% 12.17% 6.40% 13.07%

experience gains and losses on plan liabilities:

Amount ¤’000 (4,209) 1,571 46 12,185 (3,622)

Percentage of Plan Liabilities 5.06% 1.82% 0.05% 12.68% 4.16%

23. Share Capital Authorised 2009 ¤000

2008 ¤000

(Restated)

¤1.27 Ordinary Shares 190,500 190,500

Issued and Fully Paid

¤1.27 Ordinary Shares Balance at 1 January 183,522 183,522

Issued during the year 0 0

Balance at 31 December 183,522 183,522

24. Capital Reserve

Group and Company

Opening balance as at 1 January 46,195 46,195


Closing balance as at 31 December 43,995 46,195

25. Analysis of Reserves

In order to distinguish between items of a Revenue and Capital nature in accordance with the manner in which the Company’s parent Department differentiates between revenue and capital funding, an analysis of reserves is set out below which differentiates between the various sources of funding in this context.Significant depreciation is charged to the Income and Expenditure account in respect of Fixed Assets, for which the Company was not historically funded. Accordingly a significant deficit arises in respect of such unfunded depreciation, which is separately identified in this analysis.Industrial and Tourism Assets are funded from funds generated from sale of own resources. The proceeds from sale of such assets are available to finance further asset acquisitions. Surpluses and deficits on such sales are reflected in the Income and Expenditure account. These amounts are reflected as capital in the reserves analysis to give a better understanding of how these surpluses /deficits have been utilised.


25. Analysis of Reserves (Continued)

group Revenue ¤000

Capital ¤000

unfunded Depreciation

¤000

Net pension liability

¤000

total ¤000

Analysis of Balance as at 1 January 2009 (14,303) 54,484 (115,051) (38,046) (112,916)

Prior Year Adjustment 652 (166) 0 0 486

Restated Balance at 1 January 2009 (13,651) 54,318 (115,051) (38,046) (112,430)

Deficit for the year (17,355) 0 0 0 (17,355)

unfunded depreciation for the year 10,638 0 (10,638) 0 0

Impairment 4,002 0 (4,002) 0 0

Profit on Sale of Fixed Assets (2,474) 2,474 0 0 0

Depreciation on Asset Disposals 0 (1,687) 1,687 0 0

Write Off of Fixed Assets 599 (599) 0 0 0

Net Pension Costs 3,276 0 0 (3,276) 0


0 0 0 (52,711) (52,711)

Actuarial gains on pension liability 0 0 0 8,688 8,688

Pension contributions in the year (2,120) 0 0 2,120 0

Deferred Pension Funding 0 0 0 52,546 52,546

(17,085) 54,506 (128,004) (30,679) (121,262)

Company Revenue ¤000

Capital ¤000

unfunded Depreciation

¤000

Net pension liability

¤000

total ¤000

Analysis of Balance as at 1 January 2009 (15,059) 54,484 (114,946) (38,046) (113,567)

Prior Year Adjustment 652 (166) 0 0 486

Restated Balance as at 1 January 2009 (14,407) 54,318 (114,946) (38,046) (113,081)

Deficit for the year (17,090) 0 0 0 (17,090)

unfunded depreciation in the year 10,574 0 (10,574) 0 0

Impairment 4,002 0 (4,002) 0 0

Profits on sale of Fixed Assets (2,474) 2,474 0 0 0

Depreciation on Asset Disposals 0 (1,687) 1,687 0 0

Write Off of Fixed Assets 599 (599) 0 0 0

Net Pension Costs 3,276 0 0 (3,276) 0


0 0 0 (52,711) (52,711)

Actuarial gains on pension liability 0 0 0 8,688 8,688

Pension contributions in the year (2,120) 0 0 2,120 0

Deferred Pension Funding 0 0 0 52,546 52,546

(17,640) 54,506 (127,835) (30,679) (121,648)


26. Reconciliation of movement in Shareholders’ Funds 2009 ¤000

2008 ¤000

(Restated)

group

As at 1 January 117,287 134,063

Deficit for the financial year after taxation (17,355) (5,192)




Investment Transfer to Enterprise Ireland (2,200) 0

As at 31 December 106,255 117,287

Company

As at 1 January 116,636 133,188

Deficit for the financial year after taxation (17,090) (4,968)




Investment Transfer to Enterprise Ireland (2,200) 0

As at 31 December 105,869 116,636

27. Amounts in group Cash Flow Statement 2009 ¤000

2008 ¤000

(Restated)

(a) Net Cash Flow from operating Activities

Operating Deficit before profit on disposal of assets (18,648) (14,451)

Depreciation 10,638 8,739

Impairment of Other Investments / Related Companies 25 230

Impairment of Fixed Assets 4,002 0

Amortisation of Capital Grants (197) (196)

Write off of Fixed Assets (143) 10

Actuarial cost of current and past service 1,229 1,153

Pension contributions paid (2,120) (2,886)

Settlement Gain 0 (2,550)


Decrease / (Increase) in stocks 70 81

Decrease in debtors (70) 655

(Decrease) / Increase in creditors (1,816) (348)

Net cash outflow (7,030) (9,341)


27. Amounts in group Cash Flow Statement (Continued)

(b) Analysis of Cash Flows for headings netted in the Cash Flow Statement 2009 ¤000

2008 ¤000

(Restated)

(b) (i) Returns on investments and servicing of finance

Interest Received 944 1,810

Investment Income 0 2

Net cash inflow 944 1,812

(b) (ii) Capital expenditure and financial investment

Payments to acquire Tangible Fixed Assets (13,216) (11,232)

Payments to acquire investment in Related Company (10) (10)

Receipts from repayment of loans to other entities 18 23

Receipts from sale of Tangible Fixed Assets 3,591 10,738

Receipts from sale of Financial Assets 10 186

Net Expenditure re Shannon Town transfer 0 631

Net cash inflow (9,607) 336

(b) (iii) management of liquid Resources At 1 january 2009 ¤000

Cash Flows ¤000

At 31 December 2009 ¤000

Investment in Commercial Paper 27,306 (16,547) 10,759

27. (b) (iv) Financing 2009 ¤000

2008 ¤000

(Restated)

Contribution to Capital Reserve 0 0

Net cash inflow 0 0

(c) Analysis of Cash balances At 1 january 2009 ¤000

Cash Flows ¤000

At 31 December 2009 ¤000

Cash Balances 2,128 777 2,905

28. Contingent liabilities

The eligibility of expenditure on projects for EU aid is subject to review by institutions of the EU. Any adverse findings arising therefrom could result in requests for repayment of aid granted to projects. An estimate of the contingency cannot be determined with any accuracy because it is dependent on the compliance with the grant conditions by third parties and may be offset by recoveries from those parties.

Legal proceedings were instigated by the Company in 1994 for the recovery of rent and possession of a premises. The defendant subsequently filed an amended defence and counterclaim. No provision has been made in respect of the claim as the Company cannot make a reasonable assessment of the financial consequences, if any, of the claim. There have been no further developments in the case.


29. Commitments (a) lease obligations

An amount of ¤298,767 has been charged in the financial statements in respect of operating leases. The Group has commitments to pay ¤475,515 during 2010 in respect of leases expiring as follows:

lease obligations land & buildings ¤000

2010 8

2011-2012 22

2013 and after 445

475 (b) grant Commitments

The estimated commitments outstanding at 31 December on foot of grants awarded in the Shannon Region were:

grant Commitments 2009 ¤000

2008 ¤000

(Restated)

Shannon Free Zone Industries 34,514 29,500

Tourism ERDF 0 200

(c) Capital and other Commitments

The value of work not completed at 31 December 2009 under building contracts entered into by the Group is estimated at ¤1,622,380 (2008: ¤1,645,000).

It is estimated that future payments likely to arise from other commitments entered into at 31 December 2009 is ¤0 (2008: ¤236,000).

30. Subsidiaries and Related Companies

Subsidiary Companies

Name Nature of business % Share Capital owned

Registered office

Shannon Castle Banquets and heritage Limited

Operation of medieval Banquets and Ceilis and management of day visitor attractions.

100 Bunratty Castle and Folk Park, Bunratty, Co. Clare

Kilrush Creek marina Limited Promotion and operation of a marina. 100 Shannon Development, Shannon Town Centre, Shannon, Co Clare.

The National Technological Park Limerick Limited

Non trading. Development of the National Technology Park at Plassey, Co. Limerick

100 Shannon Development, Shannon Town Centre, Shannon, Co. Clare

Related Companies

Cumann Badoireachta Tra Li Teoranta

Non trading. Operation of Tourist Attraction.

33¹/³ Blennerville,Tralee, Co.Kerry.

Shannon Broadband Limited

Regional Broadband Development. 20 mill house, henry Street, Limerick.

Shannon Ventures Non Trading. Venture development. 33¹/³ Innovation Works, National Technology Park, Limerick.


31. Schedule of other Investments

The following investments were held by the Company as disclosed in Note 15. The results of these Companies have not been included in the Group financial statements as Shannon Development does not consider these invested companies to be associated undertakings.

Company Name Investment Share type Cost ¤000

unlisted Investments

Doolin Ferry Company Ltd Redeemable Preference 61

Foynes Aviation and maritime museum Ltd Ordinary 32

Glass Innovations Ltd Ordinary 63

Vlyte holdings Ltd Ordinary and Cumulative Redeemable Preference 381

Total Investment at Cost 537

Less: Impairment Provisions (Note 15) (294)

243

32. Directors – Disclosure of transactions

In the normal course of business, the Company may approve grants and may also enter into other contractual arrangements with undertakings in which Directors of the Company are employed or otherwise interested.

The Company adopted procedures in accordance with the guidelines issued by the Department of Finance in relation to the disclosure of interests by Directors and these procedures have been adhered to during the year.

General payments totalling ¤59,863 were made to companies in which a Director had an interest. No grant payments were made.

33. Directors’ and Secretary’s Interest in Share Capital

The Directors and Secretary did not have any beneficial interest in the share capital of the Company at 31 December 2009, or at any time during the period covered in the financial statements.

34. Related party transactions

Transactions with other companies in the Shannon Development group are not disclosed as the Company has taken advantage of the exemption available under Financial Reporting Standard 8 – Related Party Transactions.

35. ultimate Controlling party

The Government through the Minister for Finance is the shareholder in Shannon Free Airport Development Company Limited. The Company reports to the Department of Enterprise, Trade and Employment on industrial activities and to the Department of Arts, Sport and Tourism on tourism activities.

36. Comparative Amounts

Certain comparative figures have been regrouped and restated on the same basis as those for the current year.

37. Approval of the Financial Statements

The financial statements were approved by the Board of Directors on 26 March 2010.


looking forward.We look forward to the journey ahead in the knowledge that we have the abilities, commitment and determination to succeed.

shannon development annual Report 2009

Shannon Development

Town Centre Shannon Co Clare

t: + 353 61 361 555

f: + 353 61 361 903

e: [email protected]

www.ShannonDevelopment.ie

shannon development annual report and accounts 2009

Documents

future development

tourism development

infrastructural development

property development

early days shannon development

irish regional development

shannon region18

future challenges